Investing in mid-caps? Here are 10 stocks where FIIs have upped stake

FII's most favourite midcap shares

by 5paisa Research Team Last Updated: Dec 12, 2022 - 08:45 pm 52.9k Views
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Indian stock markets have hit a new high with a renewed flush of money moving towards large-cap counters as investors are looking at some comfort factor rather than bet on high-beta mid- and small-cap stocks.

Foreign portfolio investors (FPIs) or foreign institutional investors (FIIs) had become more cautious about investing in India but they did pump in more money into a clutch of mid-cap stocks for the last few months.

Quarterly shareholding data shows they pushed up their holding in as many as 83 listed companies that have a valuation of $1 billion or more. More than half of these companies are in the mid-cap pack.

A sector-wise analysis shows a vast spread but some sectors like chemicals and pharmaceuticals stand out. Around one in five of the mid-caps where FIIs increased their holding during the April-June quarter are in the pharmaceuticals sector. 

Among others, financial services, technology and engineering sectors also saw multiple mid-caps attract fresh money flow from FIIs.

Top mid-caps where FIIs bet

Navin Fluorine, one of the largest fluorochemicals makers in the country, was among the largest mid-caps that saw offshore portfolio investors turn bullish during the three months ended June 30, 2021.

Vinati Organics, a producer of speciality organic intermediates, monomers and polymers including prime raw material for the manufacture of the vital bulk drug ibuprofen, was another favourite.

FIIs also increased their stake in GMR Infrastructure, the parent of the company that operates the New Delhi international airport as lower rates of Covid-19 infections prompts authorities to ease curbs and air traffic improves.

FIIs also bought shares of drugmakers JB Chemicals & Pharmaceuticals Ltd as well as Glenmark Pharmaceuticals. In the broader healthcare sector, the investors bet more on diagnostics chain Metropolis Healthcare.

In the financial services sector, offshore investors bought shares of Computer Age Management Services, underlining demand for shares of the mutual fund transfer agency as more and more Indians invest in capital markets.

Indian Bank and IIFL Wealth Management were the other financial services stocks that attracted FIIs.
In the IT sector, Firstsource Solutions saw buying from offshore investors.

Other favourite mid-caps

A number of mid-caps that command a market value between Rs 10,000 and less than Rs 20,000 crore also saw buying interest from FIIs. These include drugmakers Suven Pharmaceuticals and Eris Lifesciences.

Other companies in this list are Chambal Fertilisers, Welspun India, Affle (India), Amara Raja Batteries, Indigo Paints, Graphite India, Lux Industries, CG Power, Zensar Technologies, Tanla Platforms, Sterlite Technologies and PNB Housing Finance.

If we ignore the market value of the companies, a different list emerges of mid-cap stocks where FIIs bought a stake of 2% or more last quarter.

These include active pharmaceutical ingredients maker Solara Active, digital gaming venture Nazara Technologies, Great Eastern Shipping, Graphite India, Burger King India and HLE Glascoat. Of these, Nazara and Burger King have gone public over the past year while HLE Glascoat’s stock has jumped fourfold.

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