According to Emkay Global, if oil prices remain at $100 per barrel for three to four months, the NSE Nifty 50 index could drop to around 21,000 points. This decline would result from the negative impact on corporate earnings due to reduced demand and compressed profit margins.

A scenario where oil prices stay above $100 per barrel for the next three to four months would hurt India's economic growth and corporate profits. This risk is not currently priced in by the market. Without mitigating measures, the Nifty index faces approximately 10% downside risk.

However, analysts indicated that any such correction would be temporary. Once crude prices return to a normalized level of $70 per barrel, India's economy and corporate earnings are expected to recover, presenting a buying opportunity.