India Market Rally: FPI Money Returns As Mid & Small Caps Outperform On Strong Earnings

India’s stock market sentiment has improved as quarterly earnings show surprising resilience. Dinshaw Irani, CEO, Helios Capital, says mid-cap and small-cap companies have delivered stronger earnings growth than large caps, with growth in the early 20% range for mid caps and late 30% range for small caps. FPI outflows have also stopped, with foreign investors slowly returning to Indian equities. India has outperformed emerging markets and global indices in recent months, potentially prompting foreign investors to reconsider their underweight positions. Dinshaw Irani believes continued strong performance could attract more global capital into Indian markets.