Mutual funds reduce stakes in 8 smallcap stocks after two quarters of buying
Shares of eight major laggards have tumbled between 25 per cent and 30 per cent over the last three months, according to the Economic Times.
Mutual funds reduced their holdings in 79 BSE small-cap stocks during the September 2026 quarter, according to an analysis by the Economic Times. This shift reverses an accumulation trend observed during the previous two quarters from December 2025 to March 2026 and March 2026 to June 2026.
The analysis, based on ACE Equity data, shows that 39 of these stocks declined by more than 10 per cent over the last three months. Eight major laggards saw their shares correct between 25 per cent and 30 per cent in that period, even as mutual funds decreased their stakes after increasing them in the prior two quarters.
One stock saw its mutual fund holding decline to 6.11 per cent in September 2026 from 9.06 per cent in June 2026, with a 3-month performance of -32 per cent. Another stock's holding dropped to 0.21 per cent in September 2026 from 0.43 per cent in June 2026, also recording a -32 per cent performance.
Other stocks reported 3-month declines of -32 per cent, -31 per cent, -30 per cent, -29 per cent, -28 per cent, -24 per cent, and -24 per cent. In these instances, mutual fund holdings fell in the September 2026 quarter compared to the June 2026 figures.