Summary
Mutual funds invested over ₹1.57 lakh crore in 2026, even as FIIs sold ₹1.56 lakh crore, but reduced stakes in nearly 30 stocks over the past year. While select stocks like TD Power Systems share delivered 100%+ returns, many others declined up to 50%, highlighting a shift toward selective investing and risk management.
Mutual funds have maintained strong buying momentum in the Indian stock market, investing over ₹1.57 lakh crore in 2026 so far, after deploying ₹4.93 lakh crore in 2025. This comes when foreign institutional investors (FIIs) remained net sellers, pulling out ₹1.56 lakh crore in 2026 following ₹1.66 lakh crore in 2025.
Despite this strong domestic support, mutual funds have cut stake in 30 stocks. Data from March 2025 to March 2026 shows nearly 30 stocks seeing a consistent decline in MF holdings, indicating gradual profit booking and portfolio rebalancing.
Stocks like Zaggle, Sterling & Wilson Renewable and Route Mobile stock saw notable stake cuts, reflecting caution after sharp price movements or changing growth expectations.Â
In contrast, Rishabh Instruments and Shivalik Bimetal Controls recorded a very marginal cut in holdings, suggesting sustained institutional confidence. This trend highlights a shift towards quality, earnings visibility and valuation comfort.
While a majority of stocks delivered negative returns in FY26, a few stood out with strong performance. TD Power Systems stock emerged as a top performer, delivering over 100% returns, while Aeroflex Industries and Tatva Chintan Pharma Chem stock gained around 50% each.
On the other hand, several stocks saw declines during the same period. RK Swamy, Route Mobile stock, Credo Brands Marketing and Sanofi India stock were among the worst performers, each falling by 50% or more.
This divergence highlights the importance of stock selection, as even in a weak market environment, select companies continued to generate strong returns while others faced sharp corrections.
Stocks Seeing the Sharpest Decline in MF?
Here is the complete list of stocks where mutual funds have cut stake over the past one year, along with their FY26 performance. Source Moneycontrol
| Company | Mar-26 | Dec-25 | Sep-25 | Jun-25 | Mar-25 | FY26 Return % |
|---|---|---|---|---|---|---|
| Gateway Distriparks | 32.3 | 33.8 | 34.2 | 35.8 | 37.4 | -15.6 |
| Zaggle Prepaid Ocean Services | 3 | 3.7 | 4.6 | 5.4 | 8 | -48.1 |
| TD Power Systems | 19.1 | 19.2 | 21.9 | 21.9 | 23.5 | 107.4 |
| Route Mobile | 4 | 6 | 7.2 | 7.8 | 8.1 | -55.4 |
| Dee Development Engineers | 13 | 14.1 | 15.9 | 16.6 | 16.7 | 11.1 |
| RK Swamy | 1.8 | 3.4 | 4.4 | 4.8 | 5.5 | -68.3 |
| Nirlon | 0.1 | 2.3 | 2.4 | 3.4 | 3.7 | -2.1 |
| Sterling & Wilson Renewable Energy | 0.5 | 0.5 | 1.5 | 3.4 | 4.1 | -40.5 |
| Taj GVK Hotels & Resorts | 0.4 | 0.5 | 1.7 | 3.6 | 4 | -37.1 |
| Quadrant Future Tek | 1 | 2.4 | 3.2 | 3.8 | 4.5 | -49 |
| Unicommerce eSolutions | 3.8 | 5.5 | 5.7 | 6.1 | 6.8 | -33.6 |
| Mahindra Holidays & Resorts | 5.2 | 5.6 | 6.6 | 6.9 | 8.1 | -20.6 |
| Aeroflex Industries | 2.1 | 2.2 | 2.4 | 2.9 | 4.9 | 40.3 |
| Aegis Logistics | 3.4 | 5.1 | 5.9 | 6 | 6.1 | -25.7 |
| Raymond Lifestyle | 3 | 3.7 | 4.9 | 5.4 | 5.4 | -27.8 |
| Patwa Chintan Pharma | 2.9 | 3.3 | 3.8 | 5.1 | 5.3 | 55.4 |
| Credo Brands Marketing | 1 | 1.6 | 1.6 | 2.4 | 3.4 | -48.8 |
| Rishabh Instruments | 10.7 | 11.6 | 11.6 | 12.4 | 13.1 | 62.1 |
| Fineotex Chemical | 1.3 | 1.3 | 1.6 | 3.1 | 3.6 | -16.3 |
| Triveni Engineering | 6.3 | 6.6 | 6.8 | 7.9 | 8.5 | -1.3 |
| Shivalik Bimetal Controls | 17.6 | 18.5 | 18.8 | 19.6 | 19.7 | -16.1 |
| Sanofi India | 9.3 | 9.5 | 10.4 | 11.2 | 11.3 | -44 |
| Sunteck Realty | 1.2 | 1.5 | 1.8 | 2.8 | 3.1 | -29.5 |
Happy investing and thank you for reading!
Disclaimer:
This website content is only for educational purposes, not investment advice. Before making any investment, it’s important to do your own research and be fully informed. Investing in the stock market includes risks, and you should carefully read the Risk Disclosure documents before proceeding. Please remember that past performance doesn’t guarantee future results, and due to market fluctuations, your investment goals may not always be achieved.
