Prominent Indian investors, Radhakishan Damani and Vijay Kedia, have undertaken significant rebalancing of their small-cap portfolios, sparking discussions about the future momentum of the small-cap rally in India. Vijay Kedia, a renowned investor, has notably exited his 1.05% stake in the small-cap auto components manufacturer Precision Camshafts during the third quarter of FY26 (December 2025 quarter). This divestment comes as the company's fundamentals reportedly stumbled. However, Kedia's strategy is not a complete withdrawal from small-caps; he has simultaneously acquired stakes in other small-cap companies, including SPML Infra and Patel Engineering, in early January 2026. These new investments indicate a selective approach rather than a full exit from the small-cap segment. Similarly, Radhakishan Damani, known as 'The Retail King', has also pared down his holdings in certain small-cap entities. Filings for the December 2025 quarter reveal that his stake in Mangalam Organics Ltd, a chemicals manufacturer, fell below 1%. He also reduced his stake in TSF Investments, a holding company, to below 1%, suggesting strategic profit-taking after the stock's significant gains. Furthermore, Damani's decade-old stake in Tata Group's retail arm, Trent, also dropped below 1% in the September 2025 quarter. These high-profile portfolio adjustments by influential investors have naturally led to market speculation regarding the small-cap rally's sustainability. While some exits are linked to deteriorating company fundamentals or operational challenges, others appear to be strategic profit-booking moves after substantial appreciation. The actions of these 'super investors' provide crucial signals, prompting other market participants to closely scrutinize their own holdings and investment strategies in the dynamic Indian equity market.