Foreign Investors Trim Stakes in 10 Midcaps Amid Sharp Declines

Aditya Birla Fashion & Retail Leads Fall with 70% Drop

Foreign institutional investors (FIIs) are actively adjusting their portfolios, reducing holdings in numerous midcap stocks. This strategic shift warrants close attention, as these decisions are often driven by intensive research and rigorous analysis.

FIIs Cut Holdings in Dozens of Midcap Stocks

Our latest review indicates that FIIs have decreased their stake in approximately 68 midcap companies. Of these, a significant portion, around 22, have experienced negative returns in the current fiscal year (FY26).

Top Underperformers Identified

We have highlighted the ten worst-performing stocks within this group, with share prices falling between 7% and a striking 70%. Aditya Birla Fashion and Retail emerged as the most significant decliner, plummeting 70% in just four months.

As of the latest filings, FIIs hold positions in approximately 137 midcap equities. Their divestments signal a cautious approach to specific segments of the market.

Market Dynamics and Investor Sentiment

The overall market sentiment can be gauged by the activity of major institutional players. For instance, the S&P BSE Sensex has seen gains of over 11% year-to-date, but this broader trend doesn’t reflect the specific challenges faced by some midcap segments.

More details available on FII stake shifts.