New Delhi, Oct. 14 -- Indian equities could face further downside before entering a consolidation phase, amid rising inflation risks, geopolitical uncertainty, elevated commodity prices and volatile foreign investor flows, according to a report by PL Capital. The brokerage has revised its 12-month Nifty 50 target to 27,589 from 27,133 earlier, while cautioning that attractive valuations alone may not trigger an immediate recovery.

The Nifty 50 has declined 8.2% over the past six weeks and 6% year-to-date, making India one of the weakest-performing major markets. Persistent foreign institutional investor (FII) selling, concerns over deficient monsoon rainfall, rising crude oil and agricultural commodity prices, higher bond yields, and the...