Foreign institutional investors are cautiously returning to Indian stocks after a significant exodus, driven by a strengthening rupee and an interim trade deal with the US. However, a sustained comeback hinges on improving corporate earnings, which have remained a concern, posing a key risk to continued foreign inflows.

Smallcap stocks are showing signs of recovery after a challenging 2025, outperforming larger peers in Q3 earnings. Analysts see this as a potential turning point, with earnings upgrades expected in 2026, though a gradual recovery and selective stock picking remain crucial for investors.

Fractal Analytics' IPO launches amid Indian IT sector worries about AI automation. While traditional IT stocks face a sharp sell-off, Fractal offers a pure-play AI investment. Its focus on enterprise AI and analytics solutions differentiates it from legacy firms. Investors weigh the high-growth AI theme against execution risks and evolving technology paradigms.

The firm keeps Reliance as a top pick with an Overweight rating and an unchanged price target of Rs 1,803, implying 24% upside from the February 6 close of Rs 1,451.

Domestic institutional investors have emerged as the dominant force in the Nifty50, with holdings rising to 24.8% as of December 2025. FIIs reduced exposure amid Rs 1.6 lakh crore sales, while promoter stakes fell to a record low. DIIs gained across sectors and market caps, reshaping Indian equity ownership patterns.

Gold and silver saw their sharpest selloff in months as macro shocks, including a stronger US dollar, CME margin hikes and profit booking, triggered a technical correction. Experts say the fall reflects a healthy reset rather than weakening fundamentals, with long-term demand for bullion remaining intact.

Radhika Gupta advises investors to “build a boring thali” — a balanced, diversified portfolio — to navigate volatile markets, instead of chasing trends or timing the market. The multi-asset omni strategy has been tested through market volatility and aims to provide stability.

Paytm has achieved its third profitable quarter, demonstrating a sustained recovery. Investors are now focused on the company's long-term durability and the quality of its growth. While core businesses like payments and financial services are performing well, new growth drivers like artificial intelligence are being explored.

Indian markets are set for a strong showing in 2026. Extreme negativity has passed, and foreign investor selling is ending. The rupee is stabilizing. This creates opportunities across all market sizes. Pharmaceuticals and consumption themes are favored. IT companies may become AI enablers. India is positioned for outperformance as global markets face pressure.

In today's fast-paced markets, Warren Buffett's wisdom emphasizes that long-term investing success hinges on sticking to a strategy rather than frequent trading. This patient approach allows compounding to work, enabling quality companies to grow and rewarding disciplined investors who focus on fundamentals amidst market volatility.