FII Favourites: 8 smallcap stocks fell about 40% in just over 2 months

In CY25, Indian equity markets faced a sharp downturn, with the benchmark Sensex slipped by 5%. At the same time, the Smallcap index saw a staggering 17% decline. This drop affected many small-cap stocks, which are often sought after by investors looking for higher returns in a shorter time frame. However, picking the right small-cap stocks with strong fundamentals remains a challenging task. As a result, many investors are turning to the strategies of large institutional investors like Foreign Institutional Investors (FIIs), whose in-depth research and market insights can offer valuable guidance. ETMarkets analysis shows that FIIs consistently increased their investments in 174 small-cap stocks between June and December 2024. However, eight of these stocks experienced a dramatic 40% drop in just over two months in CY25. (Data Source: ACE Equity). On slippery slope