Foreign Institutional Investors (FIIs) have been actively reducing their stakes in small-cap stocks over the past four quarters, causing significant price pressure in many cases. In the September 2024 quarter, FIIs held more than 10% stakes in around 246 small-cap companies. Fast forward to June 2025, and that number dropped to about 207—a clear sign of cautious withdrawal. While a few stocks still attracted some buying interest, the spotlight is on eight companies where FIIs slashed their holdings by nearly half—or even more—during the last four quarters.
The market reaction to these heavy FII cuts has largely been negative. In the recent quarter (July–September), six out of eight heavily sold stocks recorded losses, each falling by double digits within just three months. This sharp decline highlights how closely stock prices often mirror the buying or selling patterns of major institutional investors. (Data Source: ACE Equity)