
Foreign Institutional Investors (FIIs) have signalled renewed interest in BSE smallcap stocks, raising stakes in 95 companies during the December 2025 quarter. This marks a notable turnaround after two consecutive quarters of trimming positions—from March 2025 to September 2025.Interestingly, many of these smallcaps have struggled over the past year, with around 70 of the 95 stocks experiencing double-digit declines. Nine of them even tumbled sharply, losing between 50% and 67%. Despite these setbacks, FIIs’ renewed buying suggests confidence in the long-term fundamentals of these battered stocks. FII buying generally boosts market sentiment and often encourages retail investors to take notice. (Data Source: ACE Equity) FII Favourites