FY26 has exposed sharp divergences within the microcap space. While benchmarks remain resilient, several microcap stocks have seen steep value erosion, with select names crashing up to 64%, highlighting the risks of chasing returns in volatile segments.
Citibank bankers expect Indias equity capital markets to stay strong in 2026, driven by high valuations, active IPO pipelines and private equity exits. They also see the rupee recovering from its 2025 weakness as tariff uncertainty eases. Upcoming ECB guideline reforms could further boost overseas fundraising activity for Indian companies.
