FIIs and MFs Reduce Stake in 7 Smallcap Stocks in Q2FY26; Shares Crash Up to 60% – Are You Holding Any?

Tracking where major institutional investors, such as Foreign Institutional Investors (FIIs) and Mutual Funds (MFs), are placing their bets is essential. Equally important is keeping an eye on where they’re pulling back. According to the latest shareholding data for the September quarter, there are so far around 413 small-cap stocks that have holdings from both FIIs and MFs. Interestingly, in 71 of these stocks, both types of institutional investors have reduced their stake compared to the June quarter.

When it comes to market performance, the picture isn’t too rosy — nearly half of these 71 stocks have delivered negative returns so far in FY26. We have highlighted the top seven underperformers, which have plunged between 15% and 60% in just under seven months of the current fiscal year. (Data Source: ACE Equity).

1. Raymond The stock has plunged 59% in FY26 so far, dropping from Rs 1,404 to Rs 577. In the September quarter, FIIs reduced their stake to 13.61% from 13.79%, while Mutual Funds trimmed their holding to 1.87% from 3.11%.

2. Orient Cement Down 37% in FY26 so far, the stock fell from Rs 340 to Rs 215. FIIs cut their stake to 5.92% from 6.65%, and MFs reduced their holding to 0.09% from 0.62%.

3. Pokarna The stock declined 35%, from Rs 1,279 to Rs 829. FIIs marginally lowered their stake to 6.09% from 6.13%, while MFs trimmed it to 11.21% from 11.46%.

4. PDS PDS slipped 28% in FY26, falling from Rs 434 to Rs 313. FIIs cut their stake to 3.68% from 4.43%, and MFs slightly reduced theirs to 3.47% from 3.48%.

5. Avanti Feeds Down 25% this fiscal, the stock dropped from Rs 913 to Rs 687. FIIs lowered their stake to 6.98% from 7.59%, while MFs reduced it to 3.73% from 3.78%.

6. Ganesh Housing The stock has declined 19% in FY26 so far, slipping from Rs 1,056 to Rs 852. FIIs reduced their stake to 0.43% from 0.47%, and MFs to 0.09% from 0.10%.

7. Maharashtra Seamless With a 17% fall in FY26, the stock has dropped from Rs 682 to Rs 568. FIIs brought down their stake to 9.86% from 10.42%, while MFs reduced theirs to 2.90% from 3.15%.

8. NIIT NIIT has fallen 14%, going from Rs 122 to Rs 105. FIIs reduced their stake to 11.75% from 12.21%, and MFs slightly cut back to 8.15% from 8.19%.

9. Jupiter Wagons The stock slipped 14% in FY26, down from Rs 370 to Rs 319. FIIs reduced their stake to 4.42% from 4.45%, while MFs cut it to 0.95% from 1.31%.

10. Apollo Pipes Down 12% so far this fiscal, Apollo Pipes fell from Rs 379 to Rs 332. FIIs reduced their stake to 3.12% from 3.55%, and MFs trimmed it to 2.10% from 2.15%.