Mutual Funds Retreat from Smallcaps After Two-Quarter Rally; 12 Stocks Fall 20-40%
Mutual fund holdings declined across 83 BSE-listed smallcap stocks in June 2026 following two consecutive quarters of accumulation. The pullback signals a shift in institutional investor sentiment after a period of sustained buying.
Among the affected stocks, 15 have posted year-to-date declines of 20 per cent or steeper in 2026. Notable fallers include Inox Wind, KEC International, Latent View Analytics, and Afcons Infrastructure, reflecting divergent performance across the smallcap segment.
The reduction in MF exposure across multiple smallcap counters highlights changing appetite among institutional investors and suggests caution in the retail-heavy smallcap space.
