India's household savings have increasingly shifted from bank deposits to equities, providing essential risk capital for entrepreneurs. However, this trend is being tested as individual investors became net sellers in the secondary market for the first time since the pandemic, a sign of growing pessimism exacerbated by the ongoing Iran conflict. The Nifty Smallcap 100 Index, which saw a 19% annualized return over three years, may now only yield 1.3% by March 2027 if current valuations persist. This situation threatens systematic investment plans, through which the middle class has invested nearly ₹6 trillion (approximately $72 billion USD) into mutual funds since early 2024. The market's performance has also affected major IPOs, with PhonePe delaying its listing and other companies likely to follow suit. Additionally, overseas investors have withdrawn $22 billion from Indian equities in the past year, largely due to high capital-gains taxes and the depreciating rupee, which has weakened by 8%. The Reserve Bank of India may need to raise interest rates to stabilize the currency amidst potential energy shortages. The overall impact of these factors raises concerns about the sustainability of the recent financialization trend in India's economy.