Is Nifty's cheap-looking valuation a mirage? Why $100 oil could trap value hunters

Analysts warn India's Nifty valuations may be a mirage, with crude oil prices above $100 potentially triggering significant earnings downgrades for FY27. BofA Securities has already cut its Nifty earnings growth forecast, citing elevated oil prices and a potential slowdown in GDP growth. Elevated crude oil prices could lead to low single-digit downgrades, particularly in oil-sensitive sectors.