Foreign institutional investors displayed selective confidence in Indian equities during the second quarter of FY27. Even as they pulled nearly US$ 30 billion from Indian markets in 2026, compared with US$ 18 billion in 2025, they raised holdings in five companies that showed strong earnings and sectoral growth potential.
Monthly flows reflected volatility. FIIs were net buyers of ₹202 billion in July and ₹296.3 billion in August, before turning net sellers of ₹358.6 billion in September. October began with continued selling. Yet, amid this backdrop, five stocks attracted higher foreign interest.
Shilpa Medicare, a pharmaceutical company focused on oncology APIs and biologics, saw foreign holding rise from 10.92% in September 2025 to 12.11% in September 2026. Its share price surged nearly 200% year‑on‑year, supported by strong revenue growth and a promising biosimilar pipeline.
D‑Link, a networking solutions provider, benefited from rising demand for IT infrastructure and digital adoption.
Aeroflex Industries, a manufacturer of metallic flexible flow solutions and liquid cooling systems for data centres, reported record quarterly revenue and attracted foreign investors who raised their stake to 3.61%.
HFCL, a telecom and optical fibre player, saw FII ownership jump sharply, supported by a strong order book and export contracts.
MTAR Technologies, engaged in nuclear, aerospace, defence and clean energy equipment, also witnessed higher foreign interest, with Vanguard Funds emerging as a new investor.
This selective confidence signals that even during broad market exits, FIIs continue to identify pockets of growth, offering cues for retail investors about long‑term fundamentals.