FIIs Turn Bullish: Boosting Stakes in 9 Smallcap Stocks After Two Quarters of Trimming

Published: February 03, 2026 | Category: real estate news
FIIs Turn Bullish: Boosting Stakes in 9 Smallcap Stocks After Two Quarters of Trimming

Foreign Institutional Investors (FIIs) have signaled a renewed interest in BSE smallcap stocks, raising stakes in 95 companies during the December 2025 quarter. This marks a notable turnaround after two consecutive quarters of trimming positions—from March 2025 to September 2025.

Interestingly, many of these smallcaps have struggled over the past year, with around 70 of the 95 stocks experiencing double-digit declines. Nine of them even tumbled sharply, losing between 50% and 67%. Despite these setbacks, FIIs’ renewed buying suggests confidence in the long-term fundamentals of these battered stocks. FII buying generally boosts market sentiment and often encourages retail investors to take notice. (Data Source: ACE Equity)

Genesys International Corporation FIIs increased their holding to 5.33% in the December '25 quarter, up from 4.69% in September '25. Previous quarters: Mar '25: 5.11% | Jun '25: 4.84% | Sep '25: 4.69%. 1-year stock performance: -67%.

Laxmi Dental FIIs holding rose slightly to 32.45% in December '25 from 32.39% in September '25. Previous quarters: Mar '25: 34.24% | Jun '25: 33.59% | Sep '25: 32.39%. 1-Year Stock Performance: -63%.

Chemfab Alkalis FIIs entered the stock with a 0.08% holding in December '25, up from zero in September '25. Previous quarters: Mar '25: 0.03% | Jun '25: 0.01% | Sep '25: Nil. 1-Year Stock Performance: -59%.

SKF India FIIs holding inched up to 7.01% in December '25 from 6.98% in September '25. Previous quarters: Mar '25: 8.21% | Jun '25: 7.55% | Sep '25: 6.98%. 1-Year Stock Performance: -58%.

Kabra Extrusiontechnik FIIs holding rose modestly to 0.39% in December '25 from 0.37% in September '25. Previous quarters: Mar '25: 1.46% | Jun '25: 0.81% | Sep '25: 0.37%. 1-Year Stock Performance: -58%.

RK Swamy FIIs holding edged up to 0.18% in December '25 from 0.17% in September '25. Previous quarters: Mar '25: 0.79% | Jun '25: 0.18% | Sep '25: 0.17%. 1-Year Stock Performance: -57%.

EMS FIIs increased holdings to 0.21% in December '25 from 0.15% in September '25. Previous quarters: Mar '25: 0.19% | Jun '25: 0.17% | Sep '25: 0.15%. 1-Year Stock Performance: -56%.

Motisons Jewellers FIIs holding jumped to 0.74% in December '25 from 0.09% in September '25. Previous quarters: Mar '25: 0.16% | Jun '25: 0.11% | Sep '25: 0.09%. 1-Year Stock Performance: -53%.

Refex Industries FIIs holding rose to 2.03% in December '25 from 1.71% in September '25. Previous quarters: Mar '25: 2.00% | Jun '25: 1.86% | Sep '25: 1.71%. 1-Year Stock Performance: -52%.

These movements indicate a shift in investor sentiment, suggesting that despite recent underperformance, FIIs see potential in these smallcap stocks. This could be a positive signal for retail investors looking to capitalize on potential turnarounds in these companies.

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Frequently Asked Questions

1. What is the significance of FIIs increasing their stakes in smallcap stocks?
FIIs increasing their stakes in smallcap stocks often indicates a positive outlook on the long-term fundamentals of these companies. This can boost market sentiment and encourage retail investors to follow suit.
2. Which smallcap stocks have seen the most significant increase in FII holdings?
Genesys International Corporation, Laxmi Dental, Chemfab Alkalis, SKF India, Kabra Extrusiontechnik, RK Swamy, EMS, Motisons Jewellers, and Refex Industries have seen notable increases in FII holdings.
3. How have these smallcap stocks performed over the past year?
Many of these smallcap stocks have experienced significant declines, with some losing between 50% and 67% over the past year. However, FIIs' renewed interest suggests confidence in their long-term potential.
4. What factors might influence FIIs' decision to invest in these smallcap stocks?
Factors such as the company's financial health, market trends, industry growth potential, and overall economic conditions can influence FIIs' investment decisions.
5. How can retail investors benefit from FII buying in smallcap stocks?
Retail investors can benefit by following FII buying trends, as it often indicates a positive outlook on the stock. However, it's important to conduct thorough research and consider the company's fundamentals before making investment decisions.