Bad monsoons and an increase in commodity prices could hamper the current rally in India's markets while US and European growth declines and inflation remains outside the target range may also restrict market gains, MRG Capital's CEO Manu Rishi Guptha said. Meanwhile, a decline, if any, could be set off by geopolitical factors outside anyone's control. Elevated interest rates and tighter liquidity conditions have improved the prospects of fixed income as a good alternative asset to equities, but there should still be a 50% allocation to equities due to the Indian economy's stability and demand growth.