New Delhi, Feb. 28 -- The sell-off in Indian stocks is primarily technical in nature and reflects multiple compressions rather than any drastic macro issue, according to a recent report of 'Greed & Fear' by Jefferies.

The sell-off is more painful as compared with the nifty benchmark index, because of the much bigger decline in the small and mid-cap stocks where multiples are much higher.

"In India for the first time since the stock market started to correct properly, GREED & fear's base case is that the sell-off is primarily technical in nature reflecting multiple compression rather than any drastic macro issues."

Aggressive selling by foreign portfolio investors (FPIs) is a major driver for the recent stock market fall in India, but i...