Market data shows that in the December quarter, retail holdings rose in 1,019 NSE-listed companies whose average stock price fell 8.6% in the same period. Meanwhile, retail holding fell in 1,092 companies where share prices increased by 1.6%, shows data from Prime Database.
In short, retail investors bought what fell and sold what rose.
In Kaynes Technology, retail ownership nearly doubled by surging from 8.75% to 16.56% in a single quarter but the stock cratered 43%. Estimated retail buying was Rs 2,421 crore. Dixon Technologies saw estimated retail purchases of Rs 1,696 crore even as the stock dropped 26%. Vishnu Prakash R Punglia saw retail ownership jump from 26.21% to 32.25% while the stock collapsed 44%.
On the other side of the trade, retail investors were sellers in stocks that were quietly delivering. BSE saw an estimated Rs 4,313 crore in retail selling even as the stock climbed 29%. Reliance Industries (RIL) saw retail exits worth Rs 4,238 crore while the stock gained 15%. Infosys, Asian Paints, HDFC Bank, TCS, SBI, L&T, BHEL, and IDFC First Bank each saw retail selling of over Rs 1,000 crore, even as they rallied.
“Retail investors are increasingly implementing a mean reversion strategy, providing a stabilizing force in the market,” said Om Ghawalkar of Share.Market. “This involves systematically taking profits from high-performing stocks like RIL and Infosys and purchasing shares in underperforming ones.”
But Ghawalkar is clear-eyed about the cost. “While this behavior positions retail traders as vital market stabilizers that supply crucial liquidity during market downturns, it often negatively impacts their personal portfolio returns.” His verdict on the pattern is pointed: retail investors are effectively “watering the weeds and cutting the flowers.” He adds a caution that the data underscores — “‘buying the dip’ is a sophisticated, high-risk approach when not supported by confirmed bullish momentum.”The aggregate picture reflects the strain. Retail share by value in NSE-listed companies slipped to 7.25% as of December 31, 2025, from 7.45% at the end of September. In volume terms, retail ownership as a share of total capital fell to 16.17% from 16.45% over the same period. In rupee terms, however, retail holdings stood at Rs 34.14 lakh crore — up 2.94% over the quarter, suggesting that even as the share shrank, the absolute pile held its ground.
Over the past eighteen months, Indian markets have delivered modest returns at best, with large-caps holding up far better than small and mid-caps where retail investors tend to be most concentrated, and where the dip-buying has been most aggressive.
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