New Delhi, June 18 -- Stocks where retail investors are the largest non-promoter shareholders have outperformed those dominated by mutual funds or foreign portfolio investors (FPIs) since the West Asia war began.

A Mint analysis shows that companies where retail investors are the dominant non-promoter shareholders have delivered a median return of 6.4% since 27 February, the last trading day before the war broke out. That compares with 4.1% for mutual fund-dominated companies and 3.7% for FPI-heavy firms.

Market sentiment has rebounded this week following an improvement in the geopolitical backdrop. The shift in sentiment has revived appetite for riskier equities. What began as a war-led risk-off phase has moved towards cautious optimis...