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Patience of domestic money will be put to test and FPIs may return in 2026

Foreign investors have preferred global markets over India in 2025, while domestic liquidity has driven mid- and smallcap inflows. With limited capex triggers and slow credit growth, 2026 may test retail money. A valuation-led consolidation could bring FPIs back, making large caps the safer allocation for equity portfolios.

26 Dec 2025 2:49 pm