If you have been watching the Indian stock market in 2026, you have probably noticed something interesting. Foreign investors keep selling. But the market is not crashing the way you would expect.
Why?
Because Domestic Institutional Investors — DIIs — are buying. And they are buying big.
This is not a small trend. This is a structural shift in how the Indian market operates. And if you understand it, you can use it to your advantage.
In this article, I break down the top 10 stocks where DIIs have been putting serious money in 2026. I’ll tell you what they bought, how much, and — more importantly — why it makes sense for a regular investor like you to pay attention.
What are DIIs and Why Does Their Buying Matter?
Let me keep this simple.
DIIs are domestic institutional investors. Think: Indian mutual funds, LIC (Life Insurance Corporation), SBI Mutual Fund, HDFC AMC, ICICI Prudential, pension funds, and insurance companies. These are big Indian institutions that pool money from crores of regular investors and deploy it into the stock market.
When these guys buy a stock, they are not doing it on a whim. They have analysts, models, risk frameworks, and fund mandates. Their buying usually signals one thing — they believe in the long-term story of that company.
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Now here is the key number to understand the scale of this: as of 2025, DIIs control over 25% of India’s total market capitalisation. That is not a small chunk. That is a dominant force.
And in 2026, something very interesting happened. FIIs (foreign investors) were net sellers in four out of the first five months of the year. Yet the market held up reasonably well. The reason? DIIs absorbed the selling. They were net buyers of ₹3,637 crore in a single session as recently as June 25, 2026, even as FIIs sold ₹1,843 crore.
This counter-buying by DIIs has become a market stabiliser. It did not happen five years ago. It is happening now because India’s mutual fund industry has matured, SIPs (Systematic Investment Plans) from retail investors pour thousands of crores every month into mutual funds, and that money has to go somewhere.
So when you track DII buying, you are not chasing noise. You are following institutional smart money — money backed by deep research and long-term conviction.
The Bigger Picture: What Themes are DIIs Betting On in 2026?
Before I list individual stocks, you need to understand the big themes driving DII buying in 2026:
- PSU Bank Turnaround — PSU banks have cleaned up massively. NPAs (bad loans) fell from 9.11% to just 1.93%, and net profits hit an all-time high of ₹1.98 lakh crore in FY26. DIIs see this as a structural turnaround, not a temporary blip.
- Renewable Energy and Green Transition — India’s clean energy push is real. Companies with massive solar and wind portfolios are getting serious institutional attention.
- Private Banking — HDFC Bank, ICICI Bank, and their peers reported strong Q4 FY26 results. Asset quality improved, provisions fell, and loan growth remained healthy. DIIs love consistency.
- Electric Vehicles — India’s EV two-wheeler market is growing fast. Domestic institutions see the long runway ahead.
- Healthcare — Rising healthcare demand, medical tourism, and expanding hospital capacity make the sector a reliable long-term bet.
- IT — A dip-buying opportunity — IT stocks fell sharply on AI concerns. But DIIs used this opportunity to accumulate shares. They know India’s IT sector is not going anywhere.
Keep these themes in your head as you read through the stocks below.
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Top 10 Stocks DIIs Are Buying Heavily in 2026
ICICI Bank
Sector: Private Banking
DII Buying in Q4 FY26: ₹19,117 crore (14.25 crore shares added)
Let me start with the one that got the biggest cheque from DIIs this quarter.
ICICI Bank attracted the highest DII inflows in the March 2026 quarter — ₹19,117 crore. That is not a rounding error. That is a full-blooded conviction bet.
And the fundamentals back it up. ICICI Bank posted PAT of ₹13,702 crore in Q4 FY26, up 8.5% year-on-year. What really stood out was asset quality. GNPA (gross non-performing assets) hit a record low of just 1.40%. Provisions collapsed to ₹96 crore — down 89% from ₹891 crore a year ago. The bank maintained a contingency buffer of approximately ₹13,100 crore — which is about 1.5% of advances. That is a fortress balance sheet.
NIM (Net Interest Margin) held steady at 4.32%, which is strong for a bank of this size.
Why DIIs love it: ICICI Bank has become one of the most consistently profitable private banks in India. The management team has delivered quarter after quarter, asset quality is pristine, and loan growth remains healthy. For large institutional funds, ICICI Bank is a no-brainer hold.
My Take: If I had to pick one large-cap banking stock for the next three years, ICICI Bank would be at the top of my list. The dip in H1 2026 was a gift. DIIs clearly thought so too.
Watch out for: Any macro slowdown in credit demand or a sharp rise in NPAs from the retail/MSME book could be a headwind.
HDFC Bank
Sector: Private Banking
Q4 FY26 PAT: ₹19,221 crore (+9.1% YoY)
HDFC Bank is the single largest holding in almost every large-cap mutual fund in India. So it is no surprise that DIIs have been accumulating here too.
The bank delivered Q4 FY26 PAT of ₹19,221 crore — up 9.1% year-on-year. Loans grew 12% and deposits grew even faster at 14.4%, which is a healthy sign. Faster deposit growth than loan growth means the bank is not chasing risky assets. The bank also declared a dividend of ₹12 per equity share.
One honest observation though: NII (Net Interest Income) grew just 3.2% despite 12% loan growth. That shows NIM compression has been a headwind. The cost of mobilising deposits has kept margins under some pressure.
But here is the thing — Emkay Global maintains a Buy with a target of ₹1,225, citing deposit repricing tailwinds in FY27-28. ICICI Securities also has a Buy with TP ₹1,200. The stock was sitting approximately 26% below its 52-week high at the time of writing, creating a meaningful recovery opportunity.
Why DIIs love it: HDFC Bank is the bedrock of the Indian banking system. It is liquid, well-managed, and has a proven track record through multiple cycles. When the stock corrects, they buy more. Simple.
My Take: HDFC Bank at current levels feels like buying a premium property in a slightly slow market. The long-term case is rock solid. Patience is all you need.
Watch out for: Slower-than-expected NIM recovery and any disruption in the integration of past acquisitions.
Kotak Mahindra Bank
Sector: Private Banking
DII Buying in Q4 FY26: 32.86 crore shares (Dec 2025 to March 2026)
This one surprised me a bit. Kotak Mahindra Bank saw the highest share-count buying among banking stocks — 32.86 crore shares added by DIIs between December 2025 and March 2026.
Kotak has always been a quality franchise. It runs one of the cleanest balance sheets in Indian banking, with conservative underwriting and a strong CASA ratio. After a period of management transition and regulatory scrutiny, the bank seems to be stabilising operationally.
DIIs appear to be positioning here ahead of a potential re-rating. When institutional investors add 32 crore shares, they are saying — this is cheap relative to where it should be.
Why DIIs love it: Quality bank at a relative discount, combined with improving operational metrics and stable management commentary.
My Take: Kotak is a long-term compounder. If you can buy it when it is out of favour — like now — the returns over a five-year horizon tend to be excellent.
Watch out for: Any further management instability or slowdown in loan growth in the premium segment.
Reliance Industries
Sector: Oil, Telecom, Retail, Digital
DII Buying in Q4 FY26: ₹6,877 crore (4.87 crore shares)
Reliance is everyone’s favourite mega-cap. DIIs added 4.87 crore shares worth ₹6,877 crore in Q4 FY26.
Reliance is not just an oil company anymore. It is a conglomerate spanning telecom (Jio), retail (Reliance Retail), green energy (Reliance New Energy), and now digital infrastructure. The Meta AI data centre partnership — a 168 MW deal worth ₹855 crore through REIL, with Meta holding a 30% stake — adds a new revenue stream that analysts have not fully priced in yet.
Q4 FY26 PAT was ₹16,971 crore. Jio’s EBITDA continues to expand consistently, driven by ARPU growth from premium plan upgrades. The company generates over ₹1 lakh crore in annual free cash flow from Jio and Retail alone.
Why DIIs love it: Reliance is one of the very few stocks in India where you get exposure to energy, telecom, retail, and AI infrastructure all in one. For large institutional funds that need diversified exposure with mega-cap liquidity, Reliance is almost mandatory.
My Take: The Meta AI deal is underrated. India’s data centre market is just getting started, and Reliance is positioning itself right at the centre. This is a 5-year story, not a 5-month story.
Watch out for: Execution risk in green energy, and any regulatory pressure on Jio’s pricing.
ACME Solar Holdings
Sector: Renewable Energy
DII Stake Change: 7.86% (Dec 2025) → 10.06% (March 2026)
This is one of the most exciting stocks in the DII buying list for 2026.
ACME Solar is one of India’s largest renewable energy producers. It manages a portfolio of 8,071 MW across multiple projects. DIIs raised their stake from 7.86% to 10.06% in just one quarter — a sharp move for large institutional investors.
India’s renewable energy target is 500 GW by 2030. The government is pushing hard. ACME Solar is right in the middle of that tailwind.
Why DIIs love it: Scale, government tailwinds, and the massive long-term need for clean power in India. This is a multi-decade theme, not just a quarterly trade.
My Take: Renewable energy stocks can be volatile because of project execution timelines and financing risks. But at the macro level, the story is undeniable. ACME Solar is a calculated bet on India’s green future.
Watch out for: Land acquisition delays, rising interest rates (which hurt capital-intensive businesses), and project commissioning risks.
Eternal (Formerly Zomato)
Sector: Quick Commerce / Food Delivery
DII Buying in Q4 FY26: ₹8,246 crore (31.63 crore shares)
Eternal — the company formerly known as Zomato — saw DII purchases of 31.63 crore shares worth ₹8,246 crore in Q4 FY26. That is a huge amount of institutional conviction going into a new-age company.
Eternal runs Zomato (food delivery) and Blinkit (quick commerce). Blinkit in particular has been growing at an aggressive pace. Dark stores are expanding, order volumes are rising, and the unit economics are improving quarter over quarter.
DIIs buying Eternal at this level signals one thing — they believe quick commerce in India is not a fad. It is the future of urban retail.
Why DIIs love it: Enormous addressable market, strong brand in urban India, and improving profitability trajectory. For mutual funds with a 5-year horizon, Eternal is a platform play.
My Take: I will be honest — Eternal is not a stock for risk-averse investors. It is still burning cash in parts of its business, and competition from Swiggy and Zepto is real. But the long-term vision is compelling. DIIs are essentially saying — we believe in this India consumption story.
Watch out for: High cash burn, intense competition, and rich valuations.
Infosys
Sector: Information Technology
DII Buying in Q4 FY26: ₹13,105 crore (9.31 crore shares)
IT stocks fell hard in 2025-2026 on AI disruption fears. And DIIs used that fall to buy aggressively.
Infosys saw DII purchases of 9.31 crore shares worth ₹13,105 crore in Q4 FY26. That is one of the largest value-wise accumulations in the quarter.
The logic here is simple — AI disruption is real, but it does not eliminate IT services. If anything, Indian IT companies are repositioning to become AI implementation partners for global companies. Infosys has been investing heavily in AI capabilities.
Why DIIs love it: Infosys is a world-class business with global clients, strong cash generation, and a consistent dividend track record. When the stock falls 20-30% on fear, large institutional funds see it as a value opportunity.
My Take: I actually agree with DIIs on this one. The fear around Indian IT being killed by AI is overdone. Infosys and TCS will evolve. They have done it through every major tech cycle. Buying on fear is often the right move.
Watch out for: Slower deal wins, client budget cuts in the US/Europe, and real disruption if AI replaces more coding/testing roles faster than expected.
TCS (Tata Consultancy Services)
Sector: Information Technology
DII Buying in Q4 FY26: ₹5,410 crore (1.95 crore shares)
Right alongside Infosys, TCS also saw heavy DII accumulation. The stock fell approximately 26.43% during the period — and DIIs bought 1.95 crore shares worth ₹5,410 crore.
TCS is India’s largest IT company by market cap and revenue. It serves some of the world’s biggest banks, retailers, and governments. It has an operating profit margin above 28% and a Return on Equity above 59% — numbers that most companies can only dream of.
Why DIIs love it: TCS is the gold standard of Indian IT. It is the kind of stock you buy when it corrects sharply, hold for three years, and rarely regret.
My Take: Buying TCS at a 26% discount from highs feels like a solid long-term entry. The company generates enormous free cash flow and rewards shareholders consistently. I would add it to a core long-term portfolio without hesitation.
Watch out for: Same AI concerns as Infosys. Any prolonged slowdown in BFSI (banking, financial services, insurance) spend — TCS’s biggest vertical — would be a negative.
Central Bank of India
Sector: PSU Banking
DII Stake Change: 4.82% (Dec 2025) → 10.82% (March 2026)
This one is the most dramatic stake increase in the list. DII ownership in Central Bank of India more than doubled in a single quarter — from 4.82% to 10.82%.
Central Bank was established in 1911 as the first Swadeshi bank. Today it serves over 8.26 crore active customers across 4,500+ branches. For years it was known for high NPAs and poor profitability. But the PSU banking sector cleanup changed everything.
The sector-wide data tells the story: PSU bank NPAs fell from 9.11% to 1.93%, and net profits hit an all-time high of ₹1.98 lakh crore in FY26. Central Bank is part of this turnaround.
Why DIIs love it: It is a deep-value, high-upside turnaround bet. If PSU banks continue to clean up and grow profitably, Central Bank of India can deliver significant re-rating from current levels.
My Take: This is a higher-risk, higher-reward bet compared to HDFC or ICICI. I would not put my entire banking allocation here. But a small allocation as a turnaround play? That makes sense to me.
Watch out for: Any reversal in PSU bank asset quality, government interference in lending decisions, or macroeconomic stress.
Apollo Hospitals
Sector: Healthcare
DII Activity: Increased stake in Q4 FY26 per Equitymaster data
Apollo Hospitals is one of India’s most respected healthcare companies. It operates hospitals, pharmacies, diagnostics, and digital health platforms across the country. It benefits from three powerful tailwinds: rising healthcare demand, medical tourism, and strong brand trust.
Apollo plans to add 4,400 beds over the next five years — that is serious capacity expansion. In Q3 FY26 alone, they operationalised 75 beds in Pune and 30 beds in Defence Colony. Total project cost for the expansion is approximately ₹82 billion.
Why DIIs love it: Healthcare is a defensive, long-term growth sector. India is chronically underserved in hospital beds per capita compared to global standards. Apollo is the brand that will capture a large chunk of the private healthcare expansion.
My Take: Apollo is the kind of stock that may seem expensive on traditional PE ratios but delivers if you hold it for 5-10 years. The healthcare story in India is a multi-decade journey. DIIs are positioning early.
Watch out for: High capex requirements, regulatory pricing pressure on hospitals, and execution risk in new bed additions.
One More to Watch : Ola Electric
DII Stake Change: 7.01% (Dec 2025) → 11.24% (March 2026)
I am putting this outside the top 10 because it is still in very early stages, but the DII buying here is notable.
Ola Electric is India’s most visible EV two-wheeler company. DIIs more than doubled their stake in one quarter. They clearly see something — whether it is the expanding EV market, the improving product line, or potential for market share gains.
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Ola is a high-risk bet. It has challenges — quality concerns, service network issues, and competition from legacy players. But if India’s EV two-wheeler market grows the way analysts expect, Ola could be a massive winner. I would watch rather than rush here.
What This All Means for You as an Investor
Here is my honest reading of the DII buying trend in 2026:
DIIs are not panicking. Even as FIIs sold heavily for months, domestic institutions kept buying. They are playing a long game.
The sectors with strongest conviction are: private banking, IT (dip-buying), renewable energy, healthcare, and digital/consumption plays.
The PSU bank story is real. Central Bank of India’s doubling DII stake in one quarter is not random. The cleanup of PSU banks is one of the most underappreciated stories in Indian finance right now.
Retail investors can use DII buying as a signal, not a shortcut. DII accumulation is a useful filter — it tells you where smart institutional money sees value. But it does not replace your own research into the company’s business, valuation, and risk profile.
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My Personal Analysis on These Stocks.
I will be direct with you.
The Indian market in 2026 has been through a lot — geopolitical tension, currency volatility, FII selling, AI-driven fear in IT, and global rate uncertainty. And yet, domestic institutions kept buying. That is a statement about long-term confidence in India’s economy.
The stocks on this list are not lottery tickets. They are companies with real businesses, real cash flows, and real growth stories. The DII buying validates that.
If you are a long-term investor with a 3-5 year horizon, the accumulation happening in HDFC Bank, ICICI Bank, Infosys, TCS, and Reliance at 2025-2026 prices could look like a very smart decision by 2028-2029.
That does not mean every stock on this list will work out perfectly. Some of them carry real risks — Eternal burns cash, Ola Electric is unproven at scale, and renewable energy projects can face delays.
But the big picture is clear: DIIs are betting on India. And for a long-term investor, betting with them — not against them — seems like the smarter play.
Final Words
DII buying is one of the most reliable signals in the Indian stock market today. These institutions manage crores of retail Indian investors’ hard-earned money. They cannot afford to be reckless. When they increase stakes sharply — especially during periods of FII selling — it is worth paying close attention.
The top 10 stocks on this list represent a cross-section of India’s growth story — banking, technology, energy, healthcare, consumption, and infrastructure. Together, they tell you where India Inc. is heading.
Do your own research. Talk to a SEBI-registered advisor before making investment decisions. But start by watching what the smart domestic money is doing.
Because in 2026, the smart domestic money is buying India.
Disclaimer
This Article is for Informational purpose only. please invest at your own risk.
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