These 9 stocks were ditched by big bulls of Dalal Street in FY24; what should investors do?

New-age consumer technology stocks continue to attract investors on Dalal Street. Mutual funds and foreign institutional investors have increased stakes in five out of the six listed companies in the December quarter. Zomato is the top-performing stock, with a staggering 154% returns in FY24. Paytm, PB Fintech, and Nykaa have also seen an increase in investor interest. Ant Group has exited Zomato, while One97 Communications and Delhivery have trimmed down their losses. Analysts remain positive on Paytm and PB Fintech, but less bullish on Nykaa due to competition in its segments.

A review of the historical performance of smallcap stocks in January showed that at least seven of them have given positive returns for five consecutive years.

Equitree Capitals smallcap fund ‘Emerging Opportunities was second in the list, giving nearly 80% returns to investors.

About 146 stocks have given negative returns on a year-to-date basis in the smallcap segment, of which, around 97 stocks have seen a double-digit fall.

At least 31 companies that have reported a double-digit earnings growth for three quarters in a row saw consistent rise in the foreign institutional holding, data analysed by ETMarkets showed.

Hospitality and travel-related stocks gave handsome returns to investors due to the strong rebound in discretionary spending, and RateGain Travel was one among them.

About 33 multibagger stocks of 2023 have further rallied and given double-digit returns of up to 98% in just the first two months of the current year.

The trend of smallcaps and midcaps outperforming largecaps continues into the new year. A screener reveals 9 smallcap stocks with consistent buying from mutual funds and FIIs in the last four quarters of 2023. Notably, Electronics Mart India, Ion Exchange (India), Bharat Bijlee, Prism Johnson, Procter & Gamble Health, Five-Star Business Finance, Carborundum Universal, BASF India, and Hindware Home Innovation have all seen increased institutional investor interest. These stocks have shown significant growth over the past year and are expected to benefit from various factors, including strong demand and industry tailwinds.

Kacholias holding in as many as four stocks fell below 1% during the last quarter. The ace investor increased his holding in a couple of counters while trimming in three others, according to the shareholding data available on the BSE.

Of the top 10 listed software companies, mutual funds increased their holding in eight of them, while FIIs have done it in seven of them, shareholding data for the September quarter analysed by ETMarkets showed.