The firm said that despite foreign investor positioning being at multi-year lows, India remains the strongest structural growth story in global markets. In its latest ‘Greed & Fear’ report, Jefferies described 2025 as a year of “healthy consolidation” for Indian equities. The report also highlighted that India could witness a fresh rally in 2026 as economic growth picks up pace. The brokerage further noted that India’s small and mid-cap universe, despite higher valuations, continues to show stronger earnings growth potential compared to large-cap companies. “India’s small to mid-cap universe, despite higher valuations, continues to show higher earnings growth potential, which justifies the positioning,” the note said.