Foreign Institutional Investors (FIIs) have always been the pulse of Dalal Street. When they buy, retail investors sit up and take notice. And right now, despite broader market volatility, FIIs are quietly accumulating stakes in some very interesting names. From insurance giants to niche engineering players, the smart money is spreading its bets across sectors.
In this article, we’re breaking down 10 stocks where FIIs have increased their holdings, giving you the full picture—the data, the bull case, the bear case, and the financials.
Why FII Buying Matters
FIIs bring deep research, global perspective, and large capital. When they increase their stake in a company, it signals confidence in the business model and future prospects. However, it’s not a blind buy signal. You need to understand the story behind the numbers. That’s exactly what we’re going to do here.
Let’s look at the FII holding changes first, then dig into each stock one by one.
FII Holding Changes Table
| Company | FII Holding (Previous) | FII Holding (Latest) | Change |
|---|---|---|---|
| Life Insurance Corporation | 0.44% | 1.55% | +1.11% |
| Anthem Biosciences | 1.28% | 2.58% | +1.30% |
| Cupid Ltd | 1.01% | 4.17% | +3.16% |
| NLC India | 3.62% | 4.62% | +1.00% |
| Emcure Pharmaceuticals | 3.35% | 4.87% | +1.52% |
| Shyam Metalics | 2.97% | 5.29% | +2.32% |
| Diamond Power Infrastructure | 1.76% | 4.57% | +2.81% |
| Gujarat Energy | 3.98% | 10.85% | +6.87% |
| Sky Gold and Diamonds | 1.20% | 2.79% | +1.59% |
| Sedemac Mechatronics | 2.52% | 4.27% | +1.75% |
Source: Latest quarterly shareholding data
1. Life Insurance Corporation of India (LIC)
LIC is the elephant in the room—literally. India’s largest insurer and institutional investor saw FII holding jump from 0.44% to 1.55% in the September quarter. That’s a significant move for a stock where the government still holds over 96%.
| Financial Year | Revenue (₹ Crore) | Net Profit (₹ Crore) |
|---|---|---|
| FY 2024 | 8,41,982 | 36,844 |
| FY 2025 | 8,91,180 | 43,514 |
| FY 2026 | 9,73,121 | 51,594 |
Source: Company filings
Bull Case: LIC is the undisputed market leader in life insurance with a massive distribution network and brand trust. The company has been consistently improving its profitability, with net profit growing at a healthy clip. The IDBI Bank stake sale could unlock significant value for shareholders.
Bear Case: Government ownership remains a double-edged sword. Any policy change or divestment pressure could impact the stock. Also, LIC’s investment book is heavily exposed to equity markets, making it vulnerable to downturns.
2. Anthem Biosciences
Anthem Biosciences is a contract research and manufacturing services (CRAMS) player that has been quietly building a strong reputation. FII holding increased from 1.28% to 2.58%, with the number of FII investors jumping from 37 to 93.
| Financial Year | Revenue (₹ Crore) | Net Profit (₹ Crore) |
|---|---|---|
| FY 2024 | 1,417.54 | 367.31 |
| FY 2025 | 1,840.65 | 451.26 |
| FY 2026 | 2,089.31 | 616.18 |
Source: Company filings
Bull Case: Anthem operates in the high-growth CRAMS space, which is benefiting from the China+1 strategy and increased outsourcing by global pharma companies. The company has a net-debt-free balance sheet, ROE of 21.6%, and strong client relationships.
Bear Case: The stock trades at a steep valuation (P/E of 73.6x), leaving little room for error. Any slowdown in global pharma spending or client concentration issues could hurt the stock.
3. Cupid Ltd
Cupid Ltd is a small-cap condom and female hygiene products manufacturer that has caught FII attention in a big way. FII holding jumped from 1.01% to 4.17% in the June quarter. The stock has also been included in the Nifty Smallcap 250 index, which could trigger passive inflows of around $10 million.
| Financial Year | Revenue (₹ Crore) | Net Profit (₹ Crore) |
|---|---|---|
| FY 2024 | 171.09 | 39.85 |
| FY 2025 | 183.52 | 40.93 |
| FY 2026 | 357.71 | 108.26 |
Source: Company filings
Bull Case: Cupid has shown explosive revenue growth in FY26, nearly doubling from the previous year. The company has a strong order book from government and institutional buyers, both in India and Africa. The index inclusion adds liquidity and visibility.
Bear Case: The stock has run up massively (over 200% in a year), and the P/E of 185x is eye-watering. Any delay in order execution or client concentration could lead to a sharp correction.
4. NLC India
NLC India is a public sector lignite and power company that has been steadily increasing its FII holding from 3.62% to 4.62%. The company is also making waves in nuclear energy through a partnership with France’s EDF.
| Financial Year | Revenue (₹ Crore) | Net Profit (₹ Crore) |
|---|---|---|
| FY 2024 | 130,013 | 893.48 |
| FY 2025 | 152,830 | 724.92 |
| FY 2026 | 174,895 | 1,636.51 |
Source: Company filings
Bull Case: NLC is a play on India’s energy security. The company has a diversified portfolio spanning lignite, thermal, solar, and now nuclear energy. The partnership with EDF opens up long-term growth avenues. FIIs have been consistently increasing their stake over the past few quarters.
Bear Case: The company’s profitability has been lumpy, with FY25 profits actually declining before recovering in FY26. Government ownership and regulatory risks are also factors to consider.
5. Emcure Pharmaceuticals
Emcure Pharmaceuticals is a mid-cap pharma company that has been delivering consistent growth. FII holding increased from 3.35% to 4.87%, with DII holding also rising from 6.10% to 8.46%.
| Financial Year | Revenue (₹ Crore) | Net Profit (₹ Crore) |
|---|---|---|
| FY 2024 | 3,468.98 | 170.15 |
| FY 2025 | 4,334.48 | 317.13 |
| FY 2026 | 5,243.19 | 758.03 |
Source: Company filings
Bull Case: Emcure has been growing revenue at an average rate of 15.2% per year, with net margins of 10.4%. The company has a strong presence in domestic formulations and has been expanding its geographic footprint. Analysts have a BUY rating with a target price of ₹1,695.
Bear Case: The stock trades at a P/E of 45.9x, which is not cheap. Competition from larger pharma players and regulatory risks in the US market are potential headwinds.
6. Shyam Metalics and Energy
Shyam Metalics is a leading producer of ferro alloys and long steel products. FII holding jumped from 2.97% to 5.29%, making it one of the top picks in the metal space.
| Financial Year | Revenue (₹ Crore) | Net Profit (₹ Crore) |
|---|---|---|
| FY 2024 | 13,195 | 848.27 |
| FY 2025 | 15,159 | 1,028.88 |
| FY 2026 | 18,552 | 1,060.07 |
Source: Company filings
Bull Case: The company is benefiting from the government’s infrastructure push and strong domestic demand for steel. Shyam Metalics has been expanding its capacity and improving its product mix. The stock trades at a reasonable valuation compared to peers.
Bear Case: The metals sector is cyclical, and any slowdown in construction or infrastructure spending could impact demand. Global commodity price volatility is another risk.
7. Diamond Power Infrastructure
Diamond Power Infrastructure is a turnaround story that has caught FII fancy. FII holding surged from 1.76% to 4.57%, with the number of FII investors increasing from 15 to 31.
| Financial Year | Revenue (₹ Crore) | Net Profit (₹ Crore) |
|---|---|---|
| FY 2024 | 1,115 | 34.50 |
| FY 2025 | 1,910 | 34.50 |
| FY 2026 | 2,298 | 158.17 |
Source: Company filings
Bull Case: The company has staged a remarkable turnaround, with net profit rising 358% in FY26. Diamond Power manufactures cables and conductors, which are in high demand due to the power sector capex cycle. The company has also reduced its debt.
Bear Case: The stock has rallied over 77% in a short period, and the P/E of 115x is expensive. The company’s ROE and ROCE remain weak, and execution risks are high.
8. Gujarat Energy
Gujarat Energy (formerly Gujarat Gas) has seen one of the largest FII holding increases—from 3.98% to 10.85%. The reclassification of a promoter as a public shareholder has increased the free float and improved liquidity.
| Financial Year | Revenue (₹ Crore) | Net Profit (₹ Crore) |
|---|---|---|
| FY 2024 | 15,690 | 1,049 |
| FY 2025 | 16,487 | 1,029 |
| FY 2026 | 23,388 | 2,299 |
Source: Company filings
Bull Case: Gujarat Energy is a dominant player in the city gas distribution space, with a strong presence in Gujarat. The company reported its highest-ever dividend in FY26, and the stock trades at an attractive valuation (P/E of 7.46x). The increased free float has attracted institutional interest.
Bear Case: The stock has corrected significantly from its 52-week high of ₹379. Government regulations on gas pricing and competition from alternative energy sources are key risks.
9. Sky Gold and Diamonds
Sky Gold and Diamonds is a jewellery manufacturer that has been delivering stellar growth. FII holding increased from 1.20% to 2.79%, while MF holding stands at 11.03%.
| Financial Year | Revenue (₹ Crore) | Net Profit (₹ Crore) |
|---|---|---|
| FY 2024 | 1,745 | 103.28 |
| FY 2025 | 3,548 | 43.59 |
| FY 2026 | 6,295 | 201.28 |
Source: Company filings
Bull Case: Sky Gold’s revenue grew 78% in Q1 FY27, and net profit jumped 141% YoY. The company is a leading player in the organised jewellery manufacturing space, benefiting from the shift from unorganised to organised players. The PEG ratio of 0.32 suggests undervaluation relative to growth.
Bear Case: The jewellery business is highly competitive and working capital intensive. Any slowdown in consumer demand or gold price volatility could impact margins.
10. Sedemac Mechatronics
Sedemac Mechatronics is a niche auto-tech company that designs and manufactures control systems for engines. FII holding increased from 2.52% to 4.27%, and HSBC has a bullish view on the stock.
| Financial Year | Revenue (₹ Crore) | Net Profit (₹ Crore) |
|---|---|---|
| FY 2024 | 6,584 | 47.05 |
| FY 2025 | 10,584 | 47.05 |
| FY 2026 | 11,508 | 103.58 |
Source: Company filings
Bull Case: Sedemac has strong profitability with a RoCE of 40%, and its revenue has been growing at a CAGR of 129%. The company is reducing its dependence on a single customer and expanding into new segments. The stock has 40% RoCE and a PEG ratio of 0.97, indicating reasonable valuation.
Bear Case: The stock trades at a P/E of 104x, which is expensive. Any slowdown in the auto sector or loss of a key customer could hurt the stock.
What’s Driving FII Interest?
FIIs are clearly betting on a mix of themes—PSU turnaround, niche manufacturing, pharma growth, and infrastructure. What’s common across these stocks? Strong fundamentals, improving profitability, and reasonable valuations relative to growth.
However, FII buying alone is not a reason to invest. You need to do your own due diligence. Look at the business model, competitive advantages, and management quality. And always remember—FIIs can exit as quickly as they enter.
Conclusion
The 10 stocks we’ve discussed represent a diverse set of opportunities across sectors. From the stability of LIC to the high-growth potential of Sedemac, there’s something for every type of investor. But the key takeaway is this: FIIs are not just buying momentum—they’re buying quality at reasonable prices.
Best Upcoming IPOs in Space Sector ? https://dailystocks7.com/2026/10/15/agnikul-skyroot-pixxel-private-space-startups-ipos/
If you’re considering any of these stocks, ask yourself: Does the business have a sustainable competitive advantage? Is the valuation justified by growth? And most importantly, does it fit your risk profile and investment horizon?
Happy investing, and remember—the smart money moves quietly. Keep your eyes open.
Disclaimer
This Article is For Educational Purpose Only. This is Not Financial advice for any Investors.
Web Stories
Leave a Reply