New Delhi, May 6 -- After two blistering years of runaway gains, small-cap stocks finally met their reckoning in Q4FY25. As markets wobbled under global pressures and stretched valuations, retail investors and foreign funds beat a tactical retreat while domestic mutual funds doubled down, scooping up discounted shares, Mint's shareholding analysis showed.

Retail investors-those holding shares worth up to Rs.2 lakh-reduced their stakes in 51.5% of the 932 small-cap companies listed on the BSE SmallCap index. Foreign portfolio investors (FPIs), often seen as sentiment drivers, also pulled back, trimming exposure in 53.5% of these stocks.







But while individuals and foreign investors hesitated, domestic mutual funds stood firm, increas...