Retail investors increase stake in BSE Midcap stocks amid market volatility

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Mumbai, Feb 6 (IANS) Retail investors in India have been steadily increasing their presence in the stock market, and this trend continued in the December quarter (Q3 FY25) as well, according to BSE MidCap index’s shareholding data on Thursday.

The data added that the retail investors raised their stake in most of the Midcap companies listed in the BSE MidCap index.

Out of the 132 companies in the index, retail ownership increased in 69 firms, making up a little over 52 per cent of the total.

Meanwhile, 63 companies saw a decline in retail stake during Q3FY25.

Some of the well-known companies where retail investors increased their holdings include IDFC First Bank, IREDA, Mahindra & Mahindra Financial Services, and MRF Ltd.

Market experts believe this trend is driven by rising retail participation and shifting investment strategies amid ongoing market fluctuations.

Over the past year, the BSE MidCap index has gained slightly over 9 per cent, though it has fallen by about 6 per cent in the past month.

The index performed better than the Sensex over the past year, as the benchmark index rose 7.91 per cent.

However, in the last month, the Sensex remained relatively stable with a better performance than the broader mid-cap index.

During Q3, the BSE MidCap index recorded an impressive 18 per cent gain as compared to the Sensex, which rose 6 per cent in the same period.

Market analysts stated that around 18 months ago, before the elections, there was a strong rally in PSU stocks across various sectors, including public sector banks, defence companies, and mining firms.

Additionally, mid and small-cap stocks saw notable gains before the budget but have now entered a phase of consolidation.

Despite market volatility, mid-cap stocks have shown resilience and attracted investors looking for stability and long-term growth.

–IANS

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