The Nifty Index is now trading at valuations close to its long-term average versus the emerging markets. This means that the headwinds from active foreign investors due to the relative expensiveness of the Indian market are no longer valid.
FIIs cut stake in 10 smallcap stocks for 3 consecutive quarters; shares fall up to 70% in CY26
FIIs reduced stakes in 235 BSE smallcap companies for three consecutive quarters. Nine stocks suffered 50–70% declines in CY26, highlighting sustained foreign investor selling and