The biggest concern that is surrounding the equity market is the sell-off from sovereign wealth funds, especially the oil exporting nations. The sharp fall in oil prices has shaken their countries' balance sheet from a surplus economy to see huge deficits. And, therefore, to rebalance their balance sheets, they may continue to sell their holdings in global equity. This, in turn, may put pressure on Indian equities.
The second concern for India and Indian equities is the financial risk. Indian companies are still sitting on high debt.
However, here's why 2016 could be good for India and its market: