Last Updated on Dec 19, 2024 by Vanessa Sequeira
Foreign Institutional Investors (FIIs) are crucial players in the Indian stock market. They include entities like investment funds, mutual funds, and hedge funds that are based outside of India but invest substantial capital within the country. The influence of FII buying is significant, as their investment decisions can have a notable impact on stock prices and market trends. In this article, let’s look at the top stocks that have experienced a big change in FII activity in the last 6 months and 3 months.
Table of Contents
High FII Activity in Stocks in the Last 6 Months
| Name | Sub-Sector | Market Cap (in Cr.) | Close Price (Rs.) | PE Ratio | FII Holding Change – 3M (%) | FII Holding Change – 6M (%) |
| Leading Leasing Finance and Investment Company Ltd | Diversified Financials | 388.58 | 8.84 | 185.92 | 46.01 | 46.01 |
| Spicejet Ltd | Airlines | 7,395.33 | 57.70 | -17.49 | 21.05 | 21.14 |
| One Global Service Provider Ltd | Health Care Equipment & Supplies | 203.69 | 286.70 | 28.61 | 7.28 | 15.25 |
| Sera Investments & Finance India Ltd | Specialized Finance | 257.60 | 39.63 | 14.42 | 14.68 | 14.68 |
| Hi-Tech Pipes Ltd | Building Products – Pipes | 3,382.56 | 166.54 | 77.00 | 4.26 | 11.02 |
| Vodafone Idea Ltd | Telecom Services | 54,435.56 | 7.81 | -1.74 | 0.01 | 10.71 |
| One Point One Solutions Ltd | Outsourced services | 1,265.34 | 57.92 | 59.16 | 12.26 | 10.32 |
| Bloom Industries Ltd | Iron & Steel | 26.29 | 39.60 | 46.13 | 9.79 | 9.79 |
| RIR Power Electronics Ltd | Electronic Equipments | 2,502.36 | 3,260.95 | 356.46 | 3.90 | 9.34 |
| Kfin Technologies Ltd | Business Support Services | 21,233.03 | 1,235.90 | 86.30 | 1.80 | 7.87 |
Note: The mentioned stocks are based on the below-mentioned parameters and sorted using Tickertape Stock Screener on 18th December 2024.
- FII Holding – 3 Months: Set to High
- FII Holding – 6 Months: Set to High – Sort from the highest to the lowest
Please note that these stock selection criteria are provided for informational purposes only; it is essential to conduct your own research.
High FII Activity in Stocks in the Last 3 Months
| Name | Sub-Sector | Market Cap (in Cr.) | Close Price (Rs.) | PE Ratio | FII Holding Change – 3M (%) | FII Holding Change – 6M (%) |
| Leading Leasing Finance and Investment Company Ltd | Diversified Financials | 388.58 | 8.84 | 185.92 | 46.01 | 46.01 |
| Spicejet Ltd | Airlines | 7,395.33 | 57.70 | -17.49 | 21.05 | 21.14 |
| Sera Investments & Finance India Ltd | Specialized Finance | 257.60 | 39.63 | 14.42 | 14.68 | 14.68 |
| One Point One Solutions Ltd | Outsourced services | 1,265.34 | 57.92 | 59.16 | 12.26 | 10.32 |
| Bloom Industries Ltd | Iron & Steel | 26.29 | 39.60 | 46.13 | 9.79 | 9.79 |
| Emerald Finance Ltd | Consumer Finance | 442.14 | 134.90 | 107.06 | 7.85 | 7.85 |
| Onward Technologies Ltd | Outsourced services | 753.38 | 332.55 | 22.21 | 7.33 | 6.46 |
| One Global Service Provider Ltd | Health Care Equipment & Supplies | 203.69 | 286.70 | 28.61 | 7.28 | 15.25 |
| Nuvama Wealth Management Ltd | Diversified Financials | 24,701.00 | 6,885.70 | 39.50 | 7.15 | 6.97 |
| Medi Assist Healthcare Services Ltd | Insurance | 4,332.74 | 614.50 | 64.72 | 6.49 | 6.57 |
Note: The mentioned stocks are based on the below-mentioned parameters and sorted using Tickertape Stock Screener on 18th December 2024.
- FII Holding – 3 Months: Set to High – Sort from the highest to the lowest
- FII Holding – 6 Months: Set to High
Please note that these stock selection criteria are provided for informational purposes only; it is essential to conduct your own research.
🚀 Pro Tip: Utilise Tickertape’s Market Mood Index to gauge market sentiment and make informed investment decisions based on real-time market data and trends.
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What are FIIs?
Foreign Institutional Investors (FII) are known as the big movers of the market. They are institutional investors from outside the country who invest in the stock market of a particular country. Whenever they take a fresh stake or increase exposure in a company, it may reflect the potential to skyrocket the stock’s value. Hence, looking at FII buying and selling data today is considered significant when analysing market trends, especially for identifying FII favourite stocks or stocks with increasing FII holdings.
Understanding FII Activity in the Stock Market
FII activity in the stock market refers to the buying and selling actions of foreign investors. This activity is closely watched because it can greatly influence market movements. When FIIs buy stocks in large quantities, the demand for these stocks often increases, driving their prices up. Identifying stocks with increasing FII holdings in such cases can reveal strong investment opportunities.
On the other hand, significant selling by FIIs can put downward pressure on stock prices.
The impact of FII buying is not just limited to individual stocks. It often reflects broader market sentiment. For example, consistent FII buying might indicate a positive outlook on the Indian economy, suggesting that these investors are optimistic about future growth. Conversely, continuous selling by FIIs could indicate concerns about economic stability or other market-related issues. Monitoring FII buying and selling data today is crucial for understanding market sentiment. Investors can gain a holistic view of foreign and domestic investment trends by keeping an eye on FII and DII in the stock market.
Understanding the correlation between FII activity and stock market performance can be valuable. FIIs typically base their investment decisions on thorough research and analysis, so their buying activity might offer clues about which sectors or companies are currently in favour. By monitoring these trends, you might get a better sense of where the market is headed and which stocks could potentially perform well in the near future.
How to Keep Track of FII Activity with Tickertape Stock Screener?
The Stock Screener is an invaluable tool for tracking FII (Foreign Institutional Investor) activity using Tickertape. Here’s how you can effectively use two specific filters to gain insights into how FII holdings have changed over recent months:
- FII Holding Change – 3M: This filter helps you track the percentage change in FII ownership of a stock over the past three months. By applying this filter, you can identify which stocks have seen significant increases or decreases in FII holdings in the short term. This data is calculated by comparing the current FII holding percentage with what it was three months ago, offering a snapshot of recent FII investment trends in specific stocks.
- FII Holding Change – 6M: For a broader perspective, the “FII Holding Change – 6M” filter allows you to see how FII holdings have changed over the last six months. This filter is useful for identifying more sustained trends in FII activity, giving you an idea of which stocks have consistently attracted (or lost) FII interest over a half-year period.
Using these filters on Tickertape’s Stock Screener can help you make more informed decisions by understanding where foreign institutional money is flowing. It’s a strategic way to align your investment choices with trends observed by large, global investors. Check out now!
How to Analyse FII Data
To effectively interpret FII buying and selling data today, consider the following steps:
- Daily Activity Reports: Check daily data from sources like NSE or BSE, which reveal whether FIIs are net buyers or sellers. For example, if FIIs are consistently buying, it suggests positive sentiment toward the Indian markets.
- Sectoral Trends: Identify which sectors are seeing significant inflows. FIIs often target growth-oriented sectors like IT, banking, and infrastructure. These sectors frequently contain the highest FII holding stocks in India.
- Quarterly Shareholding Patterns: Analyse shareholding disclosures for stocks with increasing FII stakes. A rise in FII holding in a stock is often a sign of growing international confidence in the company’s fundamentals.
- Correlation with Market Indices: Study how FII activity correlates with index performance. High inflows often drive indices like Nifty 50 higher, while outflows may lead to corrections.
- Global Economic Indicators: FII investments are influenced by factors like US Federal Reserve interest rate policies, geopolitical events, and currency fluctuations. Analyse these external triggers alongside FII trading activity for a holistic understanding.
By combining these data points, you can pinpoint opportunities in high FII holding stocks and align your strategy with broader FII trends.
Difference Between FII and DII in the Stock Market
Understanding the interplay between FII and DII activity provides insight into market dynamics, helping investors anticipate potential opportunities or risks.
| Aspect | Foreign Institutional Investors (FIIs) | Domestic Institutional Investors (DIIs) |
| Definition | Investors or institutions from outside India investing in Indian markets. | Indian institutions such as mutual funds, banks, and insurance companies. |
| Capital Source | Foreign capital flows into Indian equity and debt markets. | Domestic capital is sourced from Indian investors or institutions. |
| Investment Focus | Globally competitive sectors like IT, pharmaceuticals, and financial services. | Domestic growth sectors include FMCG, infrastructure, and utilities. |
| Behaviour | Tend to react quickly to global macroeconomic factors like US interest rates or geopolitical events. | More stable and focused on long-term investments tied to India’s economic growth. |
| Impact on Markets | Can cause high volatility due to sudden inflows or outflows. | Often act as a stabilising force during market downturns by countering FII movements. |
| Trading Style | Frequently engage in short- to medium-term investments. | Primarily focus on long-term, value-based investing. |
| Examples of Investments | Prefer high FII holding stocks in sectors with global relevance. | Invest heavily in domestic-oriented companies and value stocks. |
| Market Sentiment Indicator | Often viewed as a gauge of international confidence in Indian markets. | Reflects domestic investor confidence and economic resilience. |
How Do FII and DII Trading Activities Work?
Now that you know the difference between DII vs DII, here’s how they work in trading. The combined activities of FIIs and DIIs significantly influence stock market trends. Here’s how:
- Capital Inflows and Outflows
FIIs bring foreign currency into the Indian market, driving liquidity and market growth. Their preference for the highest FII holding stocks in India, such as IT giants or large-cap financial companies, often boosts these sectors. DII inflows generally counteract FII outflows, ensuring market stability during global uncertainty.
- Sectoral Preferences:
FIIs prefer globally competitive sectors like IT, pharmaceuticals, and renewable energy. For instance, companies with high FII holding stocks, like top IT and banking firms, continue to attract foreign investment. DIIs invest in domestic growth stories such as FMCG, power, and infrastructure, offering more resilience during market corrections.
- Impact on Market Indices
FIIs drive short-term market trends; their buying activity often propels indices like Nifty 50 or Sensex. DIIs, with their consistent investment in value-driven stocks, ensure market stability and prevent extreme volatility.
- Macro-Level Influences
Factors like global interest rates, crude oil prices, and geopolitical events influence FII trading activity. For instance, increasing US interest rates can lead to FII outflows, impacting Indian markets. DIIs are more impacted by domestic factors, such as RBI policies and Indian GDP growth rates.
By tracking FII and DII activity, investors can make informed decisions, identifying opportunities in sectors or companies favoured by either group. Monitoring daily FII trading activity and comparing it to DII trends ensures a comprehensive understanding of the market dynamics.
Advantages of Investing in Stocks with High FII Activity
- High FII activity often reflects strong investor confidence in the stock. It suggests potential for future growth.
- Large FII investments typically boost trading volumes, making it easier to buy or sell shares without affecting the stock price significantly.
- Stocks with significant FII involvement may exhibit greater stability during market downturns, as FIIs are less likely to engage in panic-selling.
Risks of Investing in Stocks with High FII Activity
- FIIs can quickly move large sums of money, leading to sharp and unpredictable price fluctuations if they withdraw investments.
- FII decisions are influenced by global factors such as currency fluctuations or geopolitical events, which can create sudden risks for stocks.
- Relying heavily on FII-preferred stocks may result in a concentrated portfolio, increasing exposure to sector-specific downturns or market-wide corrections.
Investment Strategies Based on FII Buying Trends
Here’s how you can develop strategies based on FII buying trends.
- Monitor FII Data: To keep track of FII buying trends, you can use platforms like NSE FII data and Tickertape’s Stock Screener. These tools allow you to see which stocks have experienced significant FII activity over time, helping you spot potential opportunities based on where institutional investors are focusing their capital.
- Research Beyond Trends: While FII trends can guide you toward promising stocks, it’s important to dive deeper. You might want to assess the company’s financial health, growth prospects, and market position to ensure it aligns with your investment objectives and comfort level with risk.
- Diversify Your Portfolio: Diversification is key to managing the risks associated with FII-preferred stocks. By spreading your investments across various sectors and asset classes, you can reduce the impact of market volatility and create a more balanced portfolio that’s less vulnerable to sudden shifts in FII activity.
Who Should Invest in Stocks with High FII Holding
Investing in stocks with the highest FII holdings can be rewarding, but it suits specific types of investors:
- Risk-Averse Long-Term Investors: Such investors prefer a balance of growth and steady returns, and top FII holding stocks are typically less volatile, making them ideal for conservative portfolios.
- Growth-Oriented Investors: FIIs often invest in companies with strong fundamentals, global exposure, and significant growth potential. The FII buying stocks list can guide investors to promising opportunities in sectors like IT, finance, and energy.
- Market Sentiment Followers: For those who closely follow market trends, FII and DII data serve as valuable indicators of institutional confidence. A surge in FII holdings signals a positive sentiment that retail investors may wish to capitalise on.
- Sector-Specific Investors: Individuals targeting specific sectors such as technology, banking, or FMCG can benefit from tracking the FII holding stocks list, as FIIs tend to concentrate on sectors with global relevance and competitive advantages.
Factors to Consider Before Investing in Stocks with High FII Holding
While stocks with top FII holding stocks can offer significant benefits, consider these critical factors before investing:
- Sectoral Trends: Analyse which sectors FIIs are favouring. For instance, IT and financial services dominate the stocks with highest FII holdings, reflecting their global appeal and growth potential.
- Volatility and Risk: High FII participation can lead to increased volatility, factors like geopolitical tensions, changes in government policies, or currency fluctuations. This can cause sharp price corrections in stocks with highest FII holdings, so investors must assess their risk tolerance.
- Company Fundamentals: A high FII holding doesn’t always guarantee success. Analyse the company’s fundamentals, such as revenue growth, profitability, and debt levels, before investing. FIIs often choose fundamentally strong stocks, but retail investors must validate these choices independently.
- Valuations: Stocks with high FII interest may trade at premium valuations due to their popularity among institutional investors. Evaluate if the stock is overvalued compared to its peers and industry benchmarks before adding it to your portfolio.
- FII and DII Data Trends: Regularly monitor FII and DII data to understand market trends. If FII buying in a particular stock consistently increases, it may signal strong confidence in that company. However, sharp declines in FII holdings could indicate a loss of trust.
By carefully considering these factors, you can use the FII holding stocks list to identify potential investment opportunities while managing risks effectively. Keep an eye on the FII buying stocks list to stay updated on trends and emerging market favourites.
To Conclude
Change in FII holdings in any company significantly impacts the market. To check any change in FII holdings, use Tickertape Screener with the two major filters, FII Holdings Change – 3 months and FII Holdings Change – 6 months. To dive deeper into holdings of any stocks, go to the stock page, click on ‘Holdings’, and you will find promoter and institutional holding trends along with the shareholding pattern and history. Looking to dive deeper into the stock market? Fret not, cause #TickertapeHaiNa!
FAQs About FII Buying Stocks in 2024
What is FII buying?
FII buying refers to the purchase of stocks by Foreign Institutional Investors (FIIs) in a country’s stock market. These investors are typically large financial institutions like mutual funds, hedge funds, or pension funds that are based outside the country. Their buying activity is significant because it can bring substantial capital into the stock market.
How do FIIs influence stock prices?
FIIs can have a considerable impact on stock prices due to the large volumes they trade. When FIIs buy a stock in significant quantities, it can drive up the stock’s price due to the increased demand. Conversely, if they sell off large amounts of stock, it may lead to a decrease in its price. The influence of FIIs is not just limited to individual stocks but can also affect the overall market sentiment, often leading to broader market trends.
Which sectors are most attractive to FIIs?
FIIs often show interest in sectors that offer growth potential and stability. In India, sectors like Information Technology, Financial Services, Pharmaceuticals, and Consumer Goods have historically attracted significant FII investment. Please note that this is not a recommendation.
Is it wise to invest in stocks with high FII activity?
Investing in stocks with high FII activity can have both advantages and risks. On the positive side, FII interest in a stock often suggests strong fundamentals or positive future prospects. However, these stocks can also be more volatile, as FII movements can lead to rapid price changes. While investing in FII-heavy stocks can be rewarding, it’s important to do thorough research and consider the potential risks.
What is FII and DII?
Foreign Institutional Investors (FIIs) are entities or investors based outside India who invest in the Indian financial markets, while Domestic Institutional Investors (DIIs) are Indian-based institutions such as mutual funds, banks, and insurance companies that invest domestically.
As an insatiable reader and learner, I’ve spent the last two years exploring the world of finance. With my creative mind and curious spirit, I love making complex finance topics easy and fun for everyone to understand. Join me on my journey as we navigate the world of finance together!
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