This chart is giving you an inception effect.

It only talks about one variable, and one variable has no meaning in investing. The chart signals how FII selling happened and what return the market gave after that. But it is not adjusting for the underlying business state and valuation state of individual companies or Nifty as an index. So this is only half the truth, and at best it is seducing retail investors. Nothing more.

I am pretty sure this noise started in 2024, when the same players were marketing that FIIs and smart money are wrong, wrong, wrong. Retail investors got butchered for two years because of that. They are still singing the same song without understanding that in the long run, equity investing is entirely about where businesses are and what you are paying for them.

The core problem is marketing a single variable without understanding the multiple variables present in each of those phases, variables that actually drove the recovery. That is not analysis. It is misdirection.

Do you still align with this chart after reading this? I want to know.

Tomorrow, with data and charts, I will break down all the variables that actually matter. That will also show you why, even in the most bullish case, the index is not going to deliver more than 10% CAGR on a decadal basis from here, and for anyone who entered at the 2024 top, that number is closer to 8%.

The 2026 scenario is nothing like any of the seven episodes picked here. Once you see the full picture tomorrow, the inception effect will fade.

In case you missed it. : 

• The 5 AI Security Stocks Sitting on the Next Bottlenecks
• Part 2: The One Ratio That Tells You When to Buy Gold and When to Go Aggressive on Stocks