800% gains, 106 multibaggers in 3 years; now every second Nifty 500 stock is down in 2026. Time for caution?

After a three-year rally featuring 106 multibaggers, over half of the Nifty 500 stocks are down in 2026 amid $30 billion in FII outflows and geopolitical risks. As broader market valuations stretch, analysts advise caution, with leading fund managers highlighting better risk-reward comfort in largecap equities.