Nuvama warns Nifty’s decline could persist, says earnings outlook remains muted. The benchmark index fell 15% from its recent peak on weak earnings, persistent FII selling. Small- and mid-cap indices are down 24% and 20.5%, respectively, as per data compiled by LSEG. Nuvama said it remains defensive on Indian markets, cutting IT to \”underweight\” from \”neutral\” and increasing consumer stock exposure. The brokerage said it is \”overweight\” on consumer, private banks, insurance, telecom, pharma, cement, and chemicals, and \”under overweight\” on industrials, metals, power, IT, autos, and PSU firms. It added that small- andMid-cap stocks remain expensive, making them vulnerable to further declines. It thinks the correction is owing to India’s earnings reconciling with not just weak top-line growth, but also its EM peers. High valuation only added to the misery. This spurred FII outflows, undermining India”s BoP and macro liquidity (LAF surplus),\” said the brokerage.