In its latest GREED & Fear report, Jefferies strategist Christopher Wood emphasizes that India, while facing significant foreign portfolio investment (FPI) outflows, remains an attractive market due to strong domestic participation. The report notes that India's weighting in the MSCI Emerging Markets Index has decreased from 19.5% to 11.5% since the start of last year, as global investors increasingly favor AI-driven markets like Korea and Taiwan. Foreign investors have sold a net US$21.1 billion in Indian equities in 2026, surpassing the previous year's record outflow of US$18.8 billion. Despite this, the Nifty MidCap 100 Index has shown resilience, rallying 19.2% from its April low and gaining nearly 97% since the beginning of the year, significantly outperforming the Nifty 50's 34% increase. Domestic mutual fund inflows surged to ₹500 billion in March, bolstered by retail participation through Systematic Investment Plans (SIPs). Jefferies anticipates a 13% growth in earnings per share for the Nifty MidCap 100 in the current fiscal year, reinforcing the segment's attractiveness despite rising valuations.