Investors closely watch FII activity, recognizing that foreign institutions typically invest only after extensive research. While tracking where they are buying is important, observing where they are reducing their stakes can be just as insightful.

A deep dive into the smallcap space reveals a striking trend: FIIs trimmed holdings in nearly 398 smallcap stocks over two consecutive quarters, i.e. September 2025 and December 2025. In just the first three months of 2026, around 100 of these stocks have already fallen by more than 25%. Digging deeper, 14 stocks stand out for even steeper declines, plunging between 40% and 65%. (Data Source: ACE Equity)