New Delhi, Feb. 1 -- Retail investors, once quick to load up on stocks ahead of the Union Budget, turned more cautious this year. The shift had less to do with the Budget itself and more to do with with the circumstances of the market. Slower earnings growth, global uncertainty, commodity price swings and patchy returns have made individual investors far more selective about where they put their money.

This change in behaviour is visible in the numbers. Though many small investors had been actively buying during the Sensex's nearly 7% rise in the December quarter, positioning for a possible policy boost, their participation has since narrowed.

Out of 2,321 companies analyzed by Mint, only 967 firms or 42% saw an increase in ownership by...