Indian Equity Markets Show Mixed Recovery Amid Liquidity Challenges and Market Correction

India's equity markets have experienced a 1.5-year consolidation marked by a 15% correction in the Nifty 500 and weak market breadth, reflecting a cyclical economic slowdown. While large-cap stocks show signs of recovery supported by policy measures, small and mid-cap segments face liquidity challenges, leading to sharper declines and subdued IPO activity. Experts highlight compressed valuations and targeted fiscal support as potential catalysts for a rally, but concerns persist over SME market relevance and investor caution amid global uncertainties.