MFs’ Bets: 15 smallcap stocks turn volatile, tumble up to 50% in 3 months. Do you own any? - 3-month slide

Smallcap stocks have endured a bruising three months, with the index sliding more than 13% and several stocks shedding up to 50% of their value. Sentiment, however, may be showing early signs of improvement. Over the last two sessions, the Sensex has rallied more than 3,500 points, including a sharp 2,500-point surge on Tuesday (February 3), after India and the US reached a trade agreement.Under the deal, the US will roll back the punitive 25% tariff and cut reciprocal tariffs to 18% from 25%, while India has agreed to halt purchases of Russian oil. With sentiment improving, several smallcap stocks could also see a strong rebound, with some already trading higher in today’s session. To explore opportunities, we analyzed 357 smallcap stocks in which mutual funds increased their holdings in Q4. Around 100 of these have fallen more than 20%, and 15 have dropped 35–50% over the past three months—despite growing mutual fund interest—making them potential recovery candidates. It should be noted that this trend analysis is for informational purposes only and is not a recommendation. (Data Source: ACE Equity). 3-month slide