As the Iran war marked two months on April 28, 2026, brokerages have adjusted their forecasts for Indian equities, with the average Nifty target falling 3.8% from 29,899.31 to 28,747.98. Analysts attribute this decline to geopolitical instability and rising crude oil prices, which have raised inflation concerns in an oil-import-dependent economy like India. Goldman Sachs has downgraded Indian markets to 'Market-weight,' reducing GDP growth forecasts by 1.1 percentage points to 5.9% and increasing inflation expectations by 70 basis points. The brokerage has also cut its 12-month Nifty50 target to 25,900 from 29,300. Other firms, including HSBC and JPMorgan, have similarly downgraded their ratings, with JPMorgan noting that India's premium to the MSCI Emerging Markets index has decreased significantly. Despite these downgrades, some brokerages, such as Morgan Stanley, remain optimistic about India's medium-term prospects, projecting the Sensex to reach 95,000 by December 2026 due to improving earnings momentum and strong policy support. Investment strategies are shifting towards sectors less sensitive to oil price fluctuations, such as financials and telecom, while caution is advised for cyclicals like autos and durables.