Mutual Funds Reduce Holdings in 30 Stocks Over Four Quarters Amid Strong Market Conditions

Mutual Funds Reduce Holdings in Select Stocks Amid Market Correction

Despite their continued support for Indian markets, mutual funds have been reducing their holdings in select stocks over the past four consecutive quarters. According to findings by Moneycontrol, around 30 stocks have seen consistent selling by mutual funds during this period.

Among the biggest cuts, KNR Constructions saw the highest reduction, followed by Concord Enviro Systems and Nazara Technologies. Other stocks witnessing continued selling include GE Vernova T&D India, United Foodbrands, Praj Industries, Bosch Home Comfort India, NRB Bearings, JNK India, Gateway Distriparks, Zaggle Prepaid Ocean Services, TD Power Systems, Route Mobile, Dee Development Engineers, RK Swamy, Nirlon, Sterling and Wilson Renewable Energy, Taj GVK Hotels, Quadrant Future Tek, Unicommerce eSolutions, Mahindra Holidays and Resorts, and Aeroflex Industries.

The steepest decline was seen in KNR Constructions, with mutual fund holdings falling by 8.5 percentage points to 18.85 percent in the March 2026 quarter from 27.39 percent a year earlier. Concord Enviro Systems and Nazara Technologies also saw cuts of around 8 percentage points each, with holdings dropping to 6.95 percent and 1.64 percent from 15 percent and 9.6 percent, respectively.

Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data

Other notable reductions include GE Vernova T&D India, where mutual fund holdings declined to 18 percent from 24.7 percent a year ago, United Foodbrands to 11 percent from 16.87 percent, Praj Industries to 12.25 percent from 18 percent, and Bosch Home Comfort India to 0.96 percent from 6.44 percent.

Stocks such as NRB Bearings, JNK India, Gateway Distriparks, Zaggle Prepaid Ocean Services, TD Power Systems, and Route Mobile saw stake cuts of around 5 percentage points each, while Dee Development Engineers, RK Swamy, Nirlon, Sterling and Wilson Renewable Energy, Taj GVK Hotels, and Quadrant Future Tek saw reductions of around 3.5 to 4 percentage points.

Despite these selective cuts, mutual funds have remained key supporters of the market, investing over Rs 1.57 lakh crore so far in 2026 after investing Rs 4.93 lakh crore in 2025. This comes even as foreign institutional investors remained net sellers, offloading over Rs 1.56 lakh crore in 2026 following Rs 1.66 lakh crore of selling in 2025.

Read also: US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline

Markets have seen a correction, with benchmark indices Sensex and Nifty declining around 9.1 percent and 8 percent so far in 2026, respectively, while broader indices such as the BSE MidCap 150 and BSE SmallCap 250 have fallen about 1 percent and 0.5 percent.

Mutual funds were also holding a reasonable amount of cash due to a modest investment pace in the previous month. The recent market correction, driven by global and domestic factors, led to increased deployment opportunities even as systematic investment plan inflows remained strong.