After correction, institutional appetite for mid-caps grows

Diverging trends

- Mayur Bhalerao

Did the recent correction in mid-cap stocks offer a chance to buy the dip or a cue to exit? A Mint analysis of March-quarter shareholding patterns reveals a sharp divergence: while domestic institutional investors stepped up their bets, retail investors pulled back, hinting at a growing divide in confidence.

The analysis of 129 mid-cap companies shows that retail investors trimmed their holdings in 74 firms—57.4% of the sample—while increasing stakes in just 51 (around 40%). Mutual funds moved in the opposite direction, using the correction to selectively build positions, raising exposure in about 60% of the mid-caps and cutting back in roughly a third.