New Delhi, Sept. 19 -- August 2025 was a resilient month for Indian equities, as markets held their ground despite heavy FII selling. Foreign investors offloaded nearly Rs.35,000 crore worth of equities during the month, pushing year-to-date outflows past Rs.1.3 trillion on the back of rising geopolitical tensions, tariff shocks, and weak Q1 earnings.

However, markets were supported by domestic institutional investors (DIIs), who infused nearly Rs.95,000 crore during the month, extending their 25th consecutive month of net buying.

While mutual funds invested across market caps, three smallcap stocks stood out, as they attracted strong buying beyond the large-cap universe.

Let's explore what their prospects look like, why mutual funds a...