FIIs Continue Outflows But Raise Stakes In Select Stocks Over Four Quarters

The sales activities by FII have been ongoing in the Indian equity market during 2026, but it is noteworthy that the most recent shareholding report for the quarter ending March 2026 reveals increases in stakes in a select group of 20 stocks.

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FIIs have raised their holdings for four straight quarters in companies including BlackBuck, Vishal Mega Mart, South Indian Bank, MTAR Technologies, Home First Finance Company, Virtuoso Optoelectronics, Shaily Engineering Plastics, Abans Enterprises, GRM Overseas, Kalpataru, UPL, GE Vernova T&D India, Polycab India, Hitachi Energy India, Waaree Energies, Midwest Gold, Tamilnadu Petroproducts, GMR Airports, Bharat Petroleum Corporation, and Hindustan Petroleum Corporation, according to shareholding data.

Sharpest Stake Increases In Select Companies

The company BlackBuck saw the maximum rise in the percentage held by foreign institutional investors (FIIs), rising by almost 21 percentage points to reach 32.5% in the March 2026 quarter, compared to 11.6% a year ago.

Similarly, Vishal Mega Mart and South Indian Bank experienced an increased percentage held by FIIs, rising by almost 15 percentage points each to reach 22% and 24.2%, respectively.

Several other companies also witnessed an increase in FII shareholding ranging between 8% and 10%. These included MTAR Technologies, Home First Finance Company, Virtuoso Optoelectronics, Shaily Engineering Plastics, and Abans Enterprises. Companies like GRM Overseas, Kalpataru, UPL, GE Vernova T&D India, Polycab India, Hitachi Energy India, and Waaree Energies experienced an increase in the FII shareholding ranging between 6% and 8%.

Continued Outflows In 2026

Despite selective accumulation, FIIs have sold nearly $18 billion worth of Indian equities in 2026 so far, following outflows of over $18.9 billion in 2025, according to market data.

Benchmark indices have reflected this trend. The Sensex is down by about 9.1% in 2026, while the Nifty 50 is down by roughly 8%. The broader index, such as the BSE MidCap 150, is down by about 1%, and the BSE SmallCap 250 is down by roughly 0.5%.

Reasons for Selling Pressure

FII inflows were associated with high market valuations, weak corporate profitability, and international political events. In addition, the rise in the price of crude oil due to tension in the Middle East was another factor causing selling pressure.

Global capital allocation has also shifted toward markets linked to artificial intelligence-led growth opportunities, according to market participants. In addition, recent downgrades by global brokerages such as HSBC, JPMorgan, and Bernstein have impacted sentiment.

Even as overall flows remain negative, the continued increase in holdings across select companies indicates ongoing participation by FIIs in specific segments of the Indian equity market.