Mumbai, April 29 -- India's mid- and small-cap stocks are seeing a clear shift in ownership patterns, with retail investors and mutual funds stepping in as key buyers even as foreign investors continue to cut exposure.

A Mint analysis of shareholding trends across BSE mid-cap and small-cap companies shows that while ownership churn remains widespread, the direction of flows differs sharply across investor groups.

Data as of 31 March 2026 suggests that domestic flows are increasingly shaping these segments, cushioning the impact of foreign selling. However, the nature of participation also highlights a divergence in risk appetite, particularly between retail investors and institutional money.

In the mid-cap universe, retail investors re...