New Delhi, Feb. 11 -- Retail investors turned significantly more cautious in the December 2025 quarter, marking the sharpest pullback in direct equity participation in over a year. Even as domestic mutual funds continued to provide a cushion, individuals steadily reduced their exposure across a widening set of listed companies, while foreign investors remained net sellers across large parts of the market.

A Mint analysis of shareholding data for 3,497 BSE-listed companies showed that retail investors-individuals holding shares worth up to Rs.2 lakh-cut their stakes in 52% of firms in the December quarter. In the previous quarter, they trimmed their holdings in 46% of these firms, a trend that has been building through the year. In Decemb...