Investors often track promoters and large institutional players like FIIs to gauge market sentiment, and when both begin trimming holdings, it usually warrants attention. In the September quarter, FIIs and promoters reduced stakes in nearly 70 smallcap companies compared to the previous quarter. At first glance, this might appear as a red flag. Yet, in a surprising twist, many of these stocks have delivered strong gains in FY26, with a dozen surging 25%–87% in just the first seven months. (Data Source: ACE Equity)