MFs cut stakes in 8 smallcap stocks after two quarters of buying; shares tumble up to 30% in 3 months

An analysis of mutual fund (MF) shareholding trends across BSE small-cap stocks over the past three quarters reveals a notable shift in institutional ownership. During the September 2026 quarter, mutual funds reduced their holdings in 79 stocks, reversing the accumulation trend seen over the previous two consecutive quarters, December 2025 to March 2026 and March 2026 to June 2026.Most of these stocks have delivered negative returns over the past three months.

In fact, 39 stocks have declined by more than 10% during this period. Among them, we have highlighted 8 major laggards that have corrected between 25% and 30% in the past three months, even as mutual funds reduced their stakes after increasing their holdings over the previous two quarters. (Data Source: ACE Equity) MF holding declined to 10.45% in September 2026 from 11.08% in June 2026. Prior to that, it stood at 10.44% in March 2026 and 8.75% in December 2025.3-month performance: -32%

MF holding declined to 6.11% in September 2026 from 9.06% in June 2026. Prior to that, it stood at 8.91% in March 2026 and 8.46% in December 2025.3-month performance: -32% MF holding declined to 0.21% in September 2026 from 0.43% in June 2026. Prior to that, it stood at 0.32% in March 2026 and 0.31% in December 2025.3-month performance: -32% MF holding declined to 0.73% in September 2026 from 1.26% in June 2026.

Prior to that, it stood at 1.14% in March 2026 and 1.07% in December 2025.3-month performance: -31% MF holding declined to 11.24% in September 2026 from 13.92% in June 2026. Prior to that, it stood at 13.82% in March 2026 and 12.22% in December 2025.3-month performance: -30% MF holding declined to 2.28% in September 2026 from 3.27% in June 2026. Prior to that, it stood at 3.22% in March 2026 and 2.40% in December 2025.3-month performance: -29%

MF holding declined to 17.68% in September 2026 from 19.08% in June 2026. Before that, it stood at 18.56% in March 2026 and 18.46% in December 2025.3-month performance: -28% MF holding declined to 6.29% in September 2026 from 8.18% in June 2026. Prior to that, it stood at 7.96% in March 2026 and 7.92% in December 2025.3-month performance: -24% MF holding declined to 5.39% in September 2026 from 5.66% in June 2026.

Prior to that, it stood at 5.62% in March 2026 and 5.17% in December 2025.3-month performance: -24% MF holding declined to 17.29% in September 2026 from 18.27% in June 2026. Prior to that, it stood at 18.10% in March 2026 and 17.41% in December 2025.3-month performance: -24%