New Delhi, Aug. 16 -- After spending much of 2026 grappling with foreign selling, an earnings slowdown, geopolitical shocks and crude-driven inflation fears, Indian equities are witnessing a subtle but important shift. This week has been highly patchy, led by global and domestic news flow, but foreign investors have begun returning, domestic liquidity remains robust, and corporate earnings have held up, especially among smallcaps in the Q1FY27 results. The question for investors is no longer whether India remains a preferred long-term investment destination, but whether domestic strengths can continue to offset current external headwinds.

Global developments continue to cast a long shadow over Indian markets, particularly through crude o...