
Investors closely track FII (Foreign Institutional Investor) activity, as these institutions typically invest after extensive research. With December-quarter shareholding data now available, a clear trend has emerged. Our analysis shows that FIIs reduced their holdings in 74 large-cap stocks in the December 2025 quarter compared with the September 2025 quarter.Notably, nearly half of these stocks– 38 in total– have underperformed, with 23 declining between 10% and 35% over the past year. We have identified the top 10 large-cap laggards where FII stake cuts coincided with sharp price declines of over 20%, potentially signalling red flags for investors. (Data source: ACE Equity) FII Stake Cuts