New Delhi, April 7 -- At a time when foreign institutional investors (FIIs) have emerged as persistent net sellers, offloading $12.7 billion in March alone, one might expect sharp swings in the largest Indian companies. Yet, that has not played out. The large-cap stocks have displayed remarkable resilience, with "normal impact costs and no jumps in trading activity", noted DSP Mutual Fund.

Data shows that 30 of Nifty 50 stocks have lost 5% or more in the last one month, with the sharpest drawdown seen of 15% in IndusInd Bank. Yet, valuations of these large-cap stocks have quietly drifted towards levels that have historically coincided with periods of deep pessimism, highlighted by the fund house in its April edition of Netra report.

On ...