FIIs returning, DIIs rotating: Sunil Subramaniam says mid & smallcaps poised for a comeback

Sunil Subramaniam sees a shift in market leadership, with DIIs poised to rotate toward midcaps, smallcaps, and lagging sectors. FIIs may accelerate inflows on improving earnings and attractive relative valuations. He expects a revival in private capex, strong prospects in industrials and PSU banks, and a potential boost from the upcoming Budget through incentives and PPP-driven projects.