FIIs trimmed stakes in 12 small-cap stocks for two consecutive quarters, shares slide up to 45% - FIIs pull back from small caps

Investors closely track FII activity, as foreign institutions typically invest after extensive research. With the December-quarter shareholding data now available for nearly 183 small-cap companies, a compelling trend is emerging. We analysed small-cap stocks where FIIs have consistently reduced their holdings over the last two quarters—September (July–September) and December (October–December). After filtering the data, 62 small-cap stocks met this criterion.Notably, around 23 of these stocks have already declined between 10% and 45% in FY26 so far. We have highlighted the top 10 laggards where sustained FII stake cuts have coincided with sharp price corrections of over 25%. (Data Source: ACE Equity) FIIs pull back from small caps