Foreign institutional investors (FIIs) have shown increased confidence by increasing their stakes in small-cap stocks like Bajaj Corp and Natco Pharma. This move comes after both companies reported significant revenue growth in their recent quarters – Bajaj Corp saw a 31% year-over-year increase, while Natco Pharma experienced a 36% jump in revenue and a 14% profit growth during Q3 FY26.

Anand Rathi's Jigar Patel suggests Birlasoft, Natco Pharma, and GAEL as potential stocks for short-term profit due to identified favorable buying points. Meanwhile, the Nifty 50 and Bank Nifty indices show mixed directions, with significant levels of 23,100 for Nifty and 52,500 for Bank Nifty requiring confirmation for future trends.