New Delhi, Sept. 21 -- Indian equities may be due for a recovery after two years of underperformance, with historical returns and continued domestic institutional buying offering some support, according to Feroze Azeez, joint chief executive officer at Anand Rathi Wealth Ltd.

"Mean reversion is favouring India," he said. He does not expect a sharp market correction unless both foreign institutional investors (FIIs) and domestic institutional investors (DIIs) turn sellers. While FIIs have been selling for an extended period, DIIs still have substantial cash to deploy, he said. Historically, the Nifty has delivered positive returns in the three years following a two-year period of price stagnation, Azeez added.

Azeez now oversees Rs.1.06 ...