Mutual Funds Trim Stakes in KNR Constructions, Nazara Technologies, Praj Industries and 27 Other Stocks Amid Market Correction

Mutual funds have continued to invest heavily in Indian equities despite market volatility.

• Invested ₹1.57 lakh crore in 2026 so far
• Invested ₹4.93 lakh crore in 2025 

This strong buying helped offset selling by foreign institutional investors (FIIs), who sold:

• ₹1.56 lakh crore in 2026
• ₹1.66 lakh crore in 2025 

Mutual FundsStakes Cut in 30 Stocks

Even while supporting the broader market, mutual funds reduced holdings in about 30 stocks over the last four quarters.

Biggest Stake Reductions

Other Stocks Seeing Continuous Selling

Several stocks saw steady stake reductions of 3–5% including:

• NRB Bearings
• JNK India
• Gateway Distriparks
• Zaggle Prepaid Ocean Services
• TD Power Systems
• Route Mobile
• Dee Development Engineers
• RK Swamy
• Nirlon
• Sterling and Wilson Renewable Energy
• Taj GVK Hotels
• Quadrant Future Tek
• Unicommerce eSolutions
• Mahindra Holidays and Resorts
• Aeroflex Industries 

Read More: JioBlackrock Prism SIF Set to Launch as Regular Plan, Mutual Funds to Follow!

Market Performance in 2026

Markets have faced a correction this year:

• The Sensex has fallen by 9.1% so far this year.
• The Nifty has declined by 8%.
• The BSE MidCap 150 index is down by 1%.
• The BSE SmallCap 250 index has slipped by 0.5%.

The correction created fresh buying opportunities, while SIP inflows remained strong.

Why Mutual Funds Are Selling Select Stocks?

Mutual funds were holding higher cash levels due to slower investing earlier. The market correction allowed them to rebalance portfolios and deploy money more selectively.

This means they are rotating investments, not exiting the market.

Conclusion

Mutual funds continue to play a major role in supporting Indian equities, even as foreign investors sell. However, they are actively reshaping portfolios by reducing exposure to select stocks and preparing for new opportunities created by market corrections.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Mutual Fund Investments are subject to market risks, read all the related documents carefully before investing.