Investors emphasize foreign institutional investments (FIIs) before investing in the stock market
because they have a tendency to pull the market in any direction. The FII data has been crucial in
predicting market sentiments over the years as any increase by them tends to show a positive
sentiment about the stock. Having said that, here are three stocks in which FIIs have been
consistently increasing their stake:
Bajaj Auto Ltd
Bajaj Auto is currently trading at ₹4543.5, with a 1.68% percent change and a net change of ₹ 74.90. The stock has experienced positive movement over one month with a return of 11.73 percent to its shareholders. In a longer horizon, the stock has delivered 27.30 percent in a year and more than 87 percent return in the last 3 years.
Bajaj Auto is an Indian company that manufactures motorcycles ,three-wheelers, and quadricycles, it is ranked as the world’s third-largest motorcycle manufacturer. A significant share of revenue comes from Exports.
Over the last two quarters, FII holdings have increased by 6.08 percent. FIIs have consistently increased their stake in the company from 10.49 percent in March 2022 to 12.35% percent in March 2023.
The company earns a significant share of its revenue through exports. Thus, one of the probable reasons for the positive sentiment among foreign investors can be the expectation of higher sales going forward.
Digging into the company’s financials, the Company’s net profit has slightly increased by ₹ 56 crore or 1.02%, from ₹ 5,530 crore in FY22 to ₹ 5,386 crore in FY23. The company has a market capitalization of ₹ 1,28,540 Cr and zero debt.
Axis Bank Ltd
Axis Bank Ltd is currently trading 1.58 percent higher at ₹ 879.50 levels till the afternoon on Monday. The stock is up 3.73 percent in a month. In the span of a year, the stock has jumped up by 32.43 percent, and in the span of three years, it has logged 130.22 percent returns.
Axis Bank is the third largest private sector bank in India. The Bank offers the entire spectrum of financial services to customer segments covering Large and Mid-Corporates, MSME, Agriculture, and Retail Businesses.
Over the last two quarters, FII holdings in the bank have increased by 6.37 percent. Their holding increased from 46.93 percent on March-22 to 49.05 percent on March 23.
Because of its long-term development stories and more rewarding possibilities for investing, FIIs are growing their interests in the bank due to its performance and expansion potential.
Analyzing the business finances, the bank’s net profit has increased by ₹ 9,174 crore or 64.75 %, from ₹ 14,168 crore in FY22 to ₹ 23,342 crore in FY23. The bank has a market capitalization of ₹ 2,70,439 crores.
Mahindra & Mahindra Ltd
Mahindra & Mahindra is currently trading at ₹1,238.25, with a 2.23 % percent change till the afternoon. The stock has gained 4.18 percent during the past 1 month and over the last fiscal year, it has given a 38.61 percent return. In the span of three years, the stock has logged a multibagger return of 220.38 percent.
Mahindra & Mahindra Limited(M&M) is an Indian Multinational automobile manufacturing corporation headquartered in Mumbai, M&M is one of the largest vehicle manufacturers by production in India, Its subsidiary Mahindra Tractors is the largest manufacturer of tractors in the world by volume.
Over the last two quarters, FII holdings increased by 2.56 percent. At the same time, FIIs have increased their shareholding from 37.3 percent in March 2022 to 39.24 percent in March 2023. As a global pioneer in tractor manufacture, the company is likely to export to a broader market for revenue, which is one of the reasons and inclinations that attract international investors.
The company’s net profit has increased by ₹ 2,927 crore or 122%, from ₹ 2,425 crore in FY21 to ₹ 5,397 crore in FY22. Keeping the time frame the same Debt to equity ratio has increased from 1.43 to 1.58. The company has a market capitalization of ₹ 1,53,948 crores.
Written by Omkar
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