MFs cut stakes in 79 companies for four straight quarters

Mumbai: India’s mutual funds (MFs) continued to support domestic equities amid market volatility and muted returns, even as foreign investors sustained their selling amid tensions between the US and Iran, which pushed crude oil prices higher, and a lack of large artificial intelligence-related investment opportunities in India. However, MFs reduced their stakes in 79 companies for four consecutive quarters through September 2026, according to ET data.

Companies that saw sustained selling by MFs included Shivalik Bimetal Controls, Stanley Lifestyles, TeamLease Services, Sammaan Capital, Kaynes Technology, Go Fashion India and DEE Development Engineers, among others. Among large-cap companies, MFs cut their stakes for four consecutive quarters are NTPC, Grasim Industries, Pidilite Industries, LTIMindtree, Indian Bank, Lupin and REC.

Read more: Smallcap mutual fund inflows drop 29% MoM to Rs 6,407 crore in October. Should investors be cautious or continue investing?

MFs bought equities worth ₹4.6 lakh crore so far in 2026, while foreign portfolio investors (FPIs) sold around $26 billion worth of Indian equities during the same period. During this period, the benchmark Sensex and Nifty declined nearly 4% each, while the Nifty Midcap 150 gained 3% and the Nifty Smallcap 250 advanced 11%.

Read more: Debt mutual funds see sharp recovery in October as quarter-end outflows reverse

Shivalik Bimetal Controls saw MF ownership decline to 5.36% in the September 2026 quarter from 18.81% in the September 2025 quarter. At Stanley Lifestyles, MF holdings fell to 7.62% from 20.26%, while at TeamLease Services they declined to 34.6% from 46.96% over the same period. Sammaan Capital saw MF holdings fall to 0.4% from 11.44% a year earlier. At Kaynes Technology, holdings declined to 10.4% from 20.65%, while at Go Fashion India they fell to 18.67% from 28.05%.