New Delhi, May 5 -- Did the recent correction in mid-cap stocks offer a chance to buy the dip or a cue to exit? The answer depends on whom you ask. A Mint analysis of March-quarter shareholding patterns reveals a sharp divergence: while domestic institutional investors stepped up their bets, retail investors pulled back, hinting at a growing divide in confidence.

The analysis of 129 mid-cap companies shows that retail investors trimmed their holdings in 74 firms-57.4% of the sample-while increasing stakes in just 51 (around 40%). Mutual funds moved in the opposite direction, using the correction to selectively build positions, raising exposure in about 60% of the mid-cap stocks and cutting back in roughly a third.

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