Bank of America (BofA) has revised its earnings growth estimates for Indian companies, reducing the projection for 2026-27 to 8.5% year-on-year, a significant drop from 14% prior to the onset of the West Asia conflict. This marks the second consecutive downgrade, as BofA's head of India research, Amish Shah, cites rising crude oil prices and geopolitical tensions as major factors impacting growth. The brokerage's earlier cuts were made shortly after the conflict began on February 27, with the first adjustment occurring on March 2. Since the conflict began, both the Nifty 50 and S&P BSE Sensex have declined by around 9%. Shah noted that if the conflict eases, there could be a 15% upside for Indian equities, driven by valuation expansion and gradual recovery throughout the year. However, he cautioned that prolonged geopolitical tensions could lead to an 8% downside. BofA's report also highlighted the strong performance of other emerging markets, particularly in sectors tied to artificial intelligence, where countries like Taiwan and South Korea are experiencing significant earnings growth. Consequently, BofA has downgraded several sectors in India, including mid-sized private banks and real estate, while favoring energy security and select financial segments.