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Investors invest money in the stock market to increase their earnings. When the stock market runs up or some investment appears under pressure, retail investors sell their stock. But the story changes after this. The price of the stock starts increasing rapidly when it is sold. This is not just a coincidence. Rather, it is the trend of the market, due to which investors have lost crores of rupees in the June quarter itself.

Stock market data shows that retail investors reduced their stake in 967 stocks in the first quarter, yet these stocks gave a staggering average return of more than 24% in the same period. According to the calculation of Prime Database Group, in RIL alone, small investors have sold shares worth about Rs 6,000 crore, while the stock has increased by 18%.

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Retail ownership in RBL Bank fell from 22.15% to 15.73%. Whereas, despite this, the company's stock saw a 43% increase. At the same time, retail investors in Tourism Finance Corporation of India also reduced their portfolio from 30.14% to 21.37%. Even after this, its shares increased by 40%.

Why are investors selling shares?

There is a different trend in the market in the first quarter of FY 26. In a media report, Sunny Agarwal, Head of Fundamental Research, SBI Securities, explains that the period before the first quarter of FY 26, i.e., September 2024, was when the market was at its peak, and till March 2025, the market started fluctuating. Agarwal says that in the first quarter, volatility increased further due to Trump's tariff-related statements and geopolitical tensions in the Middle East, as well as between India and Pakistan. In such a situation, investors started selling shares at the slightest rally. Apart from this, additional selling had to be done due to pressure on margins. Some investors may have pledged these shares for margin funding and F&O, which may have been sold to compensate for the loss incurred in the F&O segment.

Investors are unable to understand the market.

Apoorv Sheth, Head of Market Perspectives and Research at Samco Securities, says that investors are unable to understand their own moves in the market. Many retail investors look at the markets like a casino and consider stocks like a lottery. They run after immediate returns without understanding the valuation and important things. They often exit during a small decline, even if the long-term status of the stocks looks good.

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