Mutual Funds Trim Holdings in 10 Smallcap Stocks After Two Quarters of Buying

An analysis of mutual fund (MF) shareholding trends in BSE small-cap stocks over the last four quarters reveals a notable shift. During the September 2025 quarter, mutual funds trimmed their holdings in 79 stocks, marking a reversal after two consecutive quarters of accumulation — from December 2024 to March 2025, and again from March 2025 to June 2025.

About 48 stocks from the list have delivered positive price returns in FY26 so far. In fact, eight stocks have seen their share prices rise more than 50%, with some gaining as much as 95% in FY26. However, it is equally important to note that not all stocks have shared this upside. We highlighted 10 stocks from the group that have declined by as much as 32% during FY26, underlining the growing divergence in performance within the broader market.

Mutual funds are considered informed investors, often basing their decisions on in-depth research and long-term fundamentals. Mutual fund buying typically boosts investor confidence, but if they reduce their stakes after a period of steady accumulation, it’s worth paying attention. (Data Source: ACE Equity)

1. Stanley Lifestyles MF holding declined to 20.26% in the September quarter from 20.37% in June ’25. Previous quarters: Dec ’24: 19.45% | Mar ’25: 19.94% | Jun ’25: 20.37%. Stock performance FY26: –32.63%.

2. Kaveri Seed Company MF holding declined to 1.59% in the September quarter from 1.69% in June ’25. Previous quarters: Dec ’24: 0.83% | Mar ’25: 1.48% | Jun ’25: 1.69%. Stock performance FY26: –20.76%.

3. Rain Industries MF holding declined to 4.29% in the September quarter from 4.57% in June ’25. Previous quarters: Dec ’24: 2.91% | Mar ’25: 3.92% | Jun ’25: 4.57%. Stock performance FY26: –18.58%.

4. Patel Engineering MF holding declined to 0.43% in the September quarter from 0.48% in June ’25. Previous quarters: Dec ’24: 0.32% | Mar ’25: 0.36% | Jun ’25: 0.48%. Stock performance FY26: –18.32%.

5. Alivus Life Sciences MF holding declined to 3.87% in the September quarter from 4.06% in June ’25. Previous quarters: Dec ’24: 3.23% | Mar ’25: 3.59% | Jun ’25: 4.06%. Stock performance FY26: –18.01%.

6. Balrampur Chini Mills MF holding declined to 25.40% in the September quarter from 26.09% in June ’25. Previous quarters: Dec ’24: 24.93% | Mar ’25: 25.60% | Jun ’25: 26.09%. Stock performance FY26: –17.94%.

7. Bansal Wire Industries MF holding declined to 11.91% in the September quarter from 12.06% in June ’25. Previous quarters: Dec ’24: 11.46% | Mar ’25: 11.80% | Jun ’25: 12.06%. Stock performance FY26: –17.51%.

8. NCC MF holding declined to 14.34% in the September quarter from 15.23% in June ’25. Previous quarters: Dec ’24: 11.98% | Mar ’25: 13.23% | Jun ’25: 15.23%. Stock performance FY26: –17.28%.

9. JTLIndustries MF holding declined to 1.92% in the September quarter from 3.08% in June ’25. Previous quarters: Dec ’24: 2.22% | Mar ’25: 2.76% | Jun ’25: 3.08%. Stock performance FY26: –16.61%.

10. Aditya Birla Real Estate MF holding declined to 14.32% in the September quarter from 14.68% in June ’25. Previous quarters: Dec ’24: 14.00% | Mar ’25: 14.50% | Jun ’25: 14.68%. Stock performance FY26: –15.00%.