Sentiment Turning Positive: FIIs Returning & PSU Banks In Spotlight | Market Masters

Punita Kumar Sinha of Pacific Paradigm Advisors expressed strong optimism for Indian equities, stating sentiment on Dalal Street is clearly improving. After a tough 2025, valuation excesses have been corrected, especially in small and mid-caps, leaving the market healthier. Large-caps like Bharti, M&M, and SBI have driven fresh Nifty highs, backed by stable macros and relentless domestic SIP flows that act as a shock-absorber against global volatility.FIIs are likely to return as relative valuations turn attractive and FII limits in PSU banks ease. While hopeful that U.S. tariffs will settle below 25%, offering relief to exporters, she remains bullish on financials overall (private banks, NBFCs, asset managers, fintechs) rather than PSU banks alone. Better days lie ahead for India in 2026.