Indian stock markets have shown resilience, with large-cap stocks outperforming small-caps over the past year. Devina Mehra of First Global advises caution regarding small-cap investments, emphasizing they are company-specific opportunities rather than a broad category. She notes that significant drawdowns are typical in the small-cap space, citing historical examples. While benchmark indices have remained stable, sector preferences lean towards autos, pharma, and FMCG, with caution advised for banking.