Foreign Institutional Investors (FIIs) include hedge funds, pension funds, insurance companies, investment banks and mutual funds that invest in a country outside the country in which they are registered or headquartered. They can be an important source of developing capital in an economy, especially in developing nations.
India, however, has placed limits on the total value of assets an FII can purchase and the number of equity shares that they can buy, particularly in a single company, in order to limit the influence of FIIs on individual companies and the nation’s financial markets, and the potential damage that might occur if FIIs fled all together and in large numbers during a crisis.
Here are five large-cap stocks in which FIIs have increased their stakes:
Axis Bank Ltd
Axis Bank is the third largest private sector bank in India. It offers the entire spectrum of financial services to customer segments covering Large and mid-corporates, MSME, agriculture and retail businesses.
The bank saw a 3 percent increase in FII holding from 49.05 percent in the previous quarter (January to March 2023) to 52 percent in the latest quarter (April to June 2023). Axis Bank has a market capitalization of ₹ 2,99,225 crores and its shares closed at ₹ 962.50 apiece on Tuesday.
Hindustan Aeronautics Ltd
Hindustan Aeronautics is engaged in the business of manufacturing aircraft and helicopters and repair, and maintenance of aircraft and helicopters.
FIIs’ shareholding in the company increased by 2.8 percent from 9.07 percent in the January to March quarter (Q4FY23) to 11.90 percent in the April to June quarter (Q1FY24). Hindustan Aeronautics has a market capitalization of ₹ 1,29,918 crores and its shares closed at ₹ 3836.35 apiece on Tuesday.
Tata Motors Ltd
Tata Motors is part of the illustrious multinational conglomerate, the Tata group. It offers a wide and diverse portfolio of cars, sports utility vehicles, trucks, buses and defence vehicles to the world.
The auto major witnessed a 2.4 percent surge in FII holding from 15.34 percent in Q4FY23 to 17.72 percent in Q1FY24. Tata Motors has a market capitalization of ₹ 2,27,228 crores and its shares closed at ₹ 639.45 apiece on Tuesday.
Britannia Industries
Britannia Industries is one of India’s leading food companies with a 100-year legacy. It is among the most trusted food brands and manufactures food under brand names like Good Day, Tiger, NutriChoice, Milk Bikis and Marie Gold which are household names in India.
FIIs increased their stake in the company by 1.8 percent from 19.44 percent in Q4FY23 to 21.29 percent in Q1FY24. Britannia Industries has a market capitalization of ₹ 1,19,685 crores and its shares closed at ₹ 4885.60 apiece on Tuesday.
Adani Enterprises
Adani Enterprises Ltd has business interests in various economic areas such as mining, integrated resources management (IRM), infrastructure such as airports, roads, rail/ metro, water, data centres, solar manufacturing, agro and defence.
The flagship company of the Adani group saw a 1.6 percent increase in the shareholding of FIIs from 17.75 percent in Q4FY23 to 19.34 percent in Q1FY24. Adani Enterprises has a market capitalization of ₹ 2,75,675 crores and its shares closed at ₹ 2466.65 apiece on Tuesday.
Written by Simran Bafna
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