Retail-heavy stocks outpace institutional favourites amid war-driven volatility

Retail-heavy stocks have outperformed mutual fund and FPI-dominated counters since the West Asia war began on 27 February, with median returns of 6.4% versus 4.1% and 3.7% respectively. The recovery follows a steeper 21.7% median correction in retail-dominated names during the March quarter (Q4FY2026), against 15.3% for MF-heavy and 14.5% for FPI-led companies. Since March-end, retail-led stocks have gained 24.7%, ahead of 15.9% for MF-dominated and 16.8% for FPI-heavy names, supported by easing Brent crude below $80 a barrel and an interim US-Iran understanding on the Strait of Hormuz.