Foreign institutional investors have started returning to select midcap and smallcap stocks after cutting their holdings for two straight quarters, according to data from Ace Equity. At least 7 stocks saw FIIs reduce their stake in the December 2025 and March 2026 quarters, before buying again in the June 2026 quarter. Many of these stocks have also delivered strong one-year returns, showing that foreign investors are returning to parts of the market where price momentum has already been strong.
The buying comes as broader FII flows into Indian equities have also improved. After selling in most months earlier this year, FIIs turned net buyers in July and August. They bought Indian shares worth Rs 11,045 crore in July and Rs 13,123 crore in August.
