Nifty 50 sheds 9% in H1CY26: Is the Indian stock market ripe for a solid rebound in the second half of the year?

Nifty 50 shed almost 9% in H1CY26, pressured by the US-Iran conflict that pushed crude oil to multi-year highs, a weakening rupee that breached 96 per dollar, and heavy FPI outflows of about 2.74 lakh crore from Indian equities till 30 June. Crude oil has since corrected over 20% from March peaks, FPI selling pressure has receded, and valuations have softened with the Nifty's one-year forward P/E falling below its long-term average. Experts from Anand Rathi Wealth and Emkay Global believe the market is primed for a solid rebound in H2CY26, though earnings recovery may not come until Q3FY27.