There has been a period of turmoil in the stock market for the last few days. Due to geo-political tension at the global level, the red sign dominates Dalal Street. In the last week alone, Nifty has fallen by about 1.8 percent and benchmark index Sensex has fallen by more than three percent. The biggest impact of this selling has been on small stocks, where the Nifty Microcap 250 index has fallen by more than five percent. In such an environment, a common investor often gets nervous and starts thinking of emptying his portfolio. But, market leaders and domestic institutional investors (DIIs) are seeing this decline as a great opportunity. While the general public is withdrawing money from the market, DIIs are secretly investing heavily in some selected small cap companies.
‘Smart money’ bets amid panic
According to the latest data for the third quarter of the financial year 2026 (December 2025), domestic institutional investors have strengthened their trust in five specific small cap and micro cap companies despite this huge fall in the market. In all these five companies, DIIs have significantly increased their stake by more than 5 percent. It is important for small investors to understand that institutional investors always choose the long haul and they use market downturns to pick up good shares at cheap prices.
These shares of banking and healthcare attracted attention
The first name in this list is that of Ujjivan Small Finance Bank. In this bank with a market cap of Rs 10,850 crore and share price of just Rs 55, DIIs have directly increased their holding from 20.1 percent to 28.7 percent. This is a tremendous increase of about 8.6 percent.
Similarly, the interest of institutional investors has also increased significantly in the healthcare and diagnostics sector. The stake in Thyrocare Technologies (share price Rs 379), a company with a market capitalization of Rs 5,889 crore, has jumped from 13.5 percent to 20.5 percent. At the same time, in Entero Healthcare Solutions, whose share is trading at Rs 1446, DIIs have also increased their stake from 9.6 percent to 16.4 percent.
There are hidden signs of profit in industrial and chemical stocks
Apart from healthcare and banking, small stocks in industrial manufacturing and chemical sectors are also attracting ‘smart money’. DIIs’ stake in Tega Industries Limited (share price Rs 1730, market cap Rs 13,098 crore) has increased from 10.7 percent to 18.6 percent. The special thing is that Foreign Institutional Investors (FIIs) have also marginally increased their stake in this company from 1.4 percent to 1.5 percent, which shows all-round confidence in the company.
Apart from this, the name of Privy Specialty Chemicals is also included in this list. One share of this company with a market cap of about Rs 11,309 crore is priced at Rs 2900. In this, the holding of DIIs has more than doubled from 4.9 percent to 10.3 percent.
Disclaimer: This article is for information only and should not be considered as investment advice in any way. TV9 Bharatvarsha advises its readers and viewers to consult their financial advisors before taking any money-related decisions.