Indian equity markets are facing a prolonged correction, with the Nifty declining for seven consecutive weeks as investors assess the impact of elevated crude oil prices, higher US Treasury yields and continued foreign fund outflows.
Against this backdrop, Motilal Oswal Financial Services’ Siddhartha Khemka has shared his outlook for the benchmark index and offered insights into navigating the volatile market environment.
Khemka expects the market to remain in a consolidation phase in the near term. He sees the Nifty potentially recovering towards the 23,000–24,000 range by the end of the year, depending on how domestic and global conditions evolve.
Looking further ahead, he expects the index could move towards 25,000–26,000 by the end of FY27.
The outlook comes after a difficult year for Indian equities. The Nifty has fallen around 13% so far in 2026, while the Sensex has declined about 14.5%, according to the figures cited in the report.
For investors, the current environment highlights the importance of focusing on market fundamentals rather than reacting solely to short-term volatility. Factors including crude prices, foreign institutional flows, global bond yields and corporate earnings are likely to remain important drivers of market direction.
Khemka’s comments provide a framework for investors assessing the correction while waiting for greater clarity on the next phase of the market.
