Archive · 7 Nov 2025
FIIs Buy Select Stocks Amidst Domestic Investor Exits
Imagine some big money managers from other countries, called FIIs, are deciding where to put their money.
Recently, they've been taking money out of India overall because things like interest rates are going up in the US.
But, they are still finding a few specific companies in India that they really like and are buying more shares of them.
Meanwhile, Indian money managers, called DIIs, who get money from people investing in mutual funds, and also smaller individual investors (retail) have been selling shares in these same companies.
It's like the foreign investors see special reasons for these few companies to do well, such as new products or business plans, while the Indian investors are taking profits or reallocating their money for different reasons.
Overall, FIIs own less of the Indian stock market than they used to, while DIIs own more.
FIIs increased stakes in Shaily Engineering Plastics, Graphite India, and Avenue Supermarts in the September quarter.
Domestic Institutional Investors (DIIs) and retail shareholders reduced their holdings in these same companies during the same period.
Overall FII stake in Indian equities is at a 13-year low (16.7%), while DII holdings are at a record high (18.3%).
Shaily Engineering Plastics is benefiting from demand for GLP-1 drug delivery devices, Graphite India from sustainable steelmaking and advanced materials, and Avenue Supermarts from its value retail model.
Global factors like monetary tightening and a strong US dollar have made FIIs cautious on emerging markets, contrasting with steady inflows for DIIs.
- Who
- Foreign Institutional Investors (FIIs), Domestic Institutional Investors (DIIs), and retail shareholders.
- What
- A divergence in investment behavior where FIIs increased their stakes in specific companies while DIIs and retail investors reduced theirs.
- When
- During the September quarter shareholding data reporting.
- Where
- NSE-listed companies in India.
- Why
- FIIs showed selective buying possibly due to specific company growth prospects (e.g., GLP-1 medications for Shaily Engineering, sustainable steelmaking for Graphite India, and value retail potential for Avenue Supermarts), while global factors like monetary tightening and strong US dollar made them cautious on emerging markets overall. DIIs had steady inflows from mutual funds.
Foreign Institutional Investors (FIIs)
Domestic Institutional Investors (DIIs) and Retail
Investment Trend in September Quarter
Foreign Institutional Investors (FIIs)
FIIs turned net buyers in select mid and large-cap stocks.
Domestic Institutional Investors (DIIs) and Retail
DIIs and retail shareholders pared their exposure in these same companies.
Overall Stake in Indian Equities
Foreign Institutional Investors (FIIs)
FII stake stands at 16.7%, the lowest in 13 years.
Domestic Institutional Investors (DIIs) and Retail
DII holdings have risen to 18.3%, the highest on record.
Reasons for Divergent Flows
Foreign Institutional Investors (FIIs)
FIIs have been cautious due to global monetary tightening, higher US bond yields, and a stronger dollar, leading to outflows from emerging markets.
Domestic Institutional Investors (DIIs) and Retail
DIIs continue to receive steady inflows through mutual funds, enabling them to increase equity exposure.
- Date of Data
- September Quarter Shareholding Data
- FII Stake (Current)
- 16.7% (Lowest in 13 years)
- DII Stake (Current)
- 18.3% (Highest on record)
- Companies with FII Buying
- Shaily Engineering Plastics, Graphite India, Avenue Supermarts
- FII Holding Increase (Shaily Engg)
- 9.71% to 11.30%
- FII Holding Increase (Graphite India)
- 4.99% to 6.6%
- FII Holding Increase (Avenue Supermarts)
- 8.25% to 8.73%