FIIs Cut Stakes in These 10 Midcap Stocks, Shares Fall Up to 42% in 6 Months
FIIs reduced stakes in several midcap stocks over the last two quarters, while companies like KPIT Technologies and Brainbees Solutions saw sharp declines. Thermax and Bandhan Bank, however, gained despite continued foreign investor selling.
Quick Summary
Foreign Institutional Investors (FIIs) reduced holdings in several midcap stocks over the last two quarters, and many of these companies saw sharp corrections in share prices. Stocks like KPIT Technologies, Brainbees Solutions, and Vedant Fashions fell up to 42%, while Thermax and Bandhan Bank gained despite continued FII selling.
Foreign Institutional Investors (FIIs) are closely tracked by market participants because their investment decisions are usually backed by detailed research and global market analysis. While investors often focus on stocks where FIIs are increasing stakes, continuous selling by foreign investors can also provide market signals.
According to ACE Equity data, FIIs reduced their holdings in around 53 midcap companies during December 2025 and March 2026 quarters. During the 6 -month period, many of these stocks delivered negative returns.
Several midcap stocks corrected sharply, some declining between 25% and 42%. However, a few companies managed to outperform despite lower foreign investor participation.
Midcap Stocks Where FIIs Reduced Stakes
Here is the list of stocks where FIIs reduced their holdings in past two quarters, December ’25 (October–December) and March ’26 (January–March).
|
Company |
6-Month Stock Performance |
Sept ’25 FII Holding |
Dec ’25 FII Holding |
Mar ’26 FII Holding |
|
KPIT Technologies |
Down 42% |
14.31% |
13.57% |
13.25% |
|
Brainbees Solutions |
Down 33% |
4.93% |
3.88% |
3.52% |
|
Vedant Fashions |
Down 30% |
9.76% |
9.29% |
8.28% |
|
Hexaware |
Down 30% |
8.31% |
8.15% |
4.20% |
|
Dixon Technologies |
Down 29% |
20.69% |
18.68% |
18.30% |
|
Aegis Vopak Terminals |
Down 27% |
6.07% |
6.03% |
5.89% |
|
NSDL |
Down 27% |
4.64% |
3.29% |
3.15% |
|
ITC Hotels |
Down 26% |
25.49% |
16.10% |
14.58% |
|
P&G Hygiene and Health Care |
Down 25% |
1.11% |
1.06% |
0.97% |
|
Jubilant FoodWorks |
Down 25% |
20.11% |
18.59% |
17.29% |
Source: ACE Equity, ET
Stocks That Saw the Sharpest Decline
KPIT Technologies
KPIT Technologies saw the biggest decline among the stocks on the list. Shares fell 42% in six months (October 25- March 26), dropping from ₹1,224 to ₹704. During the same period, FII holding declined from 14.31% in September 2025 to 13.25% in March 2026.
Brainbees Solutions
Shares of Brainbees Solutions declined 33% over six months, falling from ₹334 to ₹224. FII holding in the company also reduced steadily from 4.93% to 3.52%.
Vedant Fashions and Hexaware Technologies
Vedant Fashions and Hexaware Technologies both corrected nearly 30% during the period as FIIs gradually reduced exposure.
ITC Hotels and Dixon Technologies Also Under Pressure
ITC Hotels declined 26% over the six-month period. FII holding in the company dropped sharply from 25.49% in September 2025 to 14.58% in March 2026.
Similarly, Dixon Technologies fell 29%, while foreign investor holding reduced from 20.69% to 18.30%.
Two Stocks Rose Despite FII Selling
During the same period, not every stock corrected after FII selling.
|
Company |
6-Month Performance |
Sept ’25 FII Holding |
Mar ’26 FII Holding |
|
Bandhan Bank |
Up 26% |
23.44% |
22.07% |
|
Thermax |
Up 50% |
13.44% |
11.25% |
Source: ACE Equity, ET
Bandhan Bank
Bandhan Bank gained 26% in six months, rising from ₹155 to ₹194, despite a gradual reduction in FII stake.
Thermax
Thermax emerged as the top performer on the list. The stock rallied 50% during the six-month period, climbing from ₹3,005 to ₹4,502, even though FII holding declined from 13.44% to 11.25%.
Conclusion: What Does This Trend Indicate?
Continuous FII selling does not always guarantee a fall in stock prices, but it often reflects cautious sentiment from foreign investors.
At the same time, domestic institutional buying, company fundamentals, sector outlook, and broader market sentiment also play an important role in determining stock performance.
The recent trend shows that while many midcap stocks corrected alongside falling FII ownership, a few companies continued to attract investor interest and delivered positive returns despite lower foreign participation.