India's largest and most heavily weighted equities, which have trailed broader market gains, are showing signs of a potential turnaround.
Market participants are increasingly viewing these unloved heavyweight stocks as poised for a rebound, driven by a shift in investor sentiment and technical indicators suggesting exhaustion in the recent underperformance.
The reassessment comes as contrarian capital flows back into the sector, attracted by valuations that have compressed significantly relative to historical averages.
Bloomberg reports that the momentum is building around these large-cap names, which have been sidelined in favor of smaller, more speculative plays over the past several months.
The shift marks a notable change in risk appetite among domestic and foreign institutional investors.
This rotation aligns with broader positive signals for Indian equity markets.