Investors closely track FII activity, as foreign institutional investors typically make investment decisions after extensive research. Therefore, when they reduce their holdings, it becomes equally important to monitor such changes. With June-quarter shareholding data now available for nearly 522 smallcap companies, an interesting trend has emerged.We analysed smallcap stocks where FIIs reduced their holdings in the June quarter compared with the March 2026 quarter. After filtering the data, 268 smallcap stocks met this criterion. Notably, around 39 of these stocks have already declined between 25% and 50% in CY2026 so far. We have highlighted the top 15 laggards where FII stake reductions have coincided with sharp price corrections of more than 30% in less than seven months of 2026. (Data Source: ACE Equity)

Rama Steel Tubes

The stock has declined 53% so far in CY26, falling from Rs 9.40 to Rs 4.40. During the June 2026 quarter, FII holding decreased to 2.70% from 5.71% in the March 2026 quarter.

Kiri Industries

The stock has fallen 45% so far in CY26, dropping from Rs 725.90 to Rs 396.80. During the June 2026 quarter, FII holding declined to 16.75% from 18.32% in the March 2026 quarter.

Ugro Capital

The stock has slipped 45% so far in CY26, declining from Rs 175.00 to Rs 96.20. During the June 2026 quarter, FII holding reduced to 5.45% from 22.34% in the March 2026 quarter.

JSW Holdings

The stock has declined 45% so far in CY26, falling from Rs 20,310.35 to Rs 11,187.05. During the June 2026 quarter, FII holding eased to 22.27% from 22.65% in the March 2026 quarter.

Nectar Lifesciences

The stock has fallen 43% so far in CY26, slipping from Rs 19.50 to Rs 11.04. During the June 2026 quarter, FII holding declined to 0.50% from 0.60% in the March 2026 quarter.

VL E-Governance & IT Solutions

The stock has dropped 40% so far in CY26, moving from Rs 19.56 to Rs 11.73. During the June 2026 quarter, FII holding fell to 1.08% from 1.37% in the March 2026 quarter.

NIIT Learning Systems

The stock has declined 40% so far in CY26, falling from Rs 398.35 to Rs 240.30. During the June 2026 quarter, FII holding reduced to 14.44% from 16.75% in the March 2026 quarter.

Khaitan Chemicals & Fertilizers

The stock has slipped 39% so far in CY26, declining from Rs 78.97 to Rs 48.07. During the June 2026 quarter, FII holding decreased to 0.11% from 0.35% in the March 2026 quarter.

Shivalik Rasayan

The stock has fallen 39% so far in CY26, dropping from Rs 355.85 to Rs 217.25. During the June 2026 quarter, FII holding declined to 0.66% from 3.66% in the March 2026 quarter.

Quick Heal Technologies

The stock has declined 38% so far in CY26, falling from Rs 266.05 to Rs 164.30. During the June 2026 quarter, FII holding decreased to 0.46% from 0.73% in the March 2026 quarter.

Newgen Software Technologies

The stock has slipped 36% so far in CY26, declining from Rs 843.90 to Rs 541.60. During the June 2026 quarter, FII holding reduced to 13.78% from 14.48% in the March 2026 quarter.

Oswal Greentech

The stock has fallen 34% so far in CY26, dropping from Rs 33.32 to Rs 21.93. During the June 2026 quarter, FII holding eased to 0.01% from 0.02% in the March 2026 quarter.

Swan Corp

The stock has declined 33% so far in CY26, falling from Rs 468.80 to Rs 313.25. During the June 2026 quarter, FII holding edged down to 10.35% from 10.41% in the March 2026 quarter.

Oswal Agro Mills

The stock has slipped 31% so far in CY26, declining from Rs 58.55 to Rs 40.12. During the June 2026 quarter, FII holding reduced to 0.00% from 0.03% in the March 2026 quarter.

Deepak Builders & Engineers India

The stock has fallen 31% so far in CY26, dropping from Rs 11.74 to Rs 8.07. During the June 2026 quarter, FII holding decreased to 0.08% from 0.16% in the March 2026 quarter.