10 Most Favourite Stocks of FIIs

Stocks with Highest FII Holdings

Introduction

In this article, we are going to see which are the 10 most favourite stocks of FIIs ie. Foreign Institutional Investors. Which are those stocks with highest FII holdings?

In our earlier article, we have seen the 10 most favourite stocks of mutual funds. These are the stocks having highest allocation in equity-oriented mutual funds. Mutual funds are the domestic institutional investors (DIIs). In the similar way, there are stocks for which the Foreign Institutional Investors (FIIs) are very much confident. Let us see which are those companies.

10 Most Favourite Stocks of FIIs | Stocks with Highest FII Holdings

Here, we have categorized the most favourite stocks of FIIs into 2 lists :

• Stocks with highest FIIs holding in terms of amount of investment
• Stocks with highest FIIs holding in terms of percentage

10 Stocks with highest FIIs holding in terms of amount of investment

1. HDFC Ltd.

Among the top 10 favourite companies of FIIs, HDFC Ltd is the most favourite stock. HDFC Ltd is the parent company of HDFC group. Out of total market cap of Rs.3.50 Lakh Crore, almost Rs.2.61 Lakh Crore is invested by FIIs.

2. HDFC Bank

• After HDFC Ltd, HDFC bank stands at the second position with around Rs.2.38 Lakh Crore FIIs investment, whereas total market cap is Rs.6.17 Lakh Crore.
• Both the above two stocks show the level of confidence FIIs are having for the flagship companies of the HDFC group.

3. ICICI Bank

• FIIs have invested around Rs.1.15 Lakh Crore in ICICI Bank. The current market cap of ICICI bank is almost Rs.2.66 Lakh Crore.
• With the relieving of NPA pressure, corporate banks are regaining the confidence of FIIs. Thus, being a corporate bank with a positive growth projectile, ICICI bank is benefiting from the same.

4. Kotak Mahindra Bank

It is a retail business focused bank with market cap of around Rs.2.83 Lakh Crore, out of which FIIs are having investment of Rs.1.14 lakh Crore.

5. Axis Bank

• It is also a corporate bank like ICICI bank. Out of the total market cap of Rs.1.76 Lakh Crore, FIIs are holding around Rs.85,000 Crore investment in Axis bank.
• As we have mentioned earlier also, Axis bank is heading at a fast pace in corporate banking segment as compared with its peers. For the same reason, it is having a considerable share of FIIs holdings in total market cap.

6. IndusInd Bank

• Hinduja Group owned IndusInd Bank has a market capitalization of about Rs.96,912 Crore. It is emerged as a one of the fastest growing banks in India. it is known for its strong remittances business.
• FIIs are holding investment of around Rs.49,000 Crore in its total market cap. That is FIIs’ contribution is more than 50% (51.4%) in IndusInd bank.

7. HCL Technologies

• HCL Technologies is primarily engaged in providing a range of software development services, business process outsourcing services and IT infrastructure services.
• Out of the total market cap of Rs.1.44 Lakh Crore, FIIs are holding around Rs.41,490 Crore investment, which is total 28.8% of total market cap. It clearly indicates the confidence FIIs are having for HCL Tech.
• We have seen in earlier article, among domestic institutional investors like mutual funds, Infosys is the favourite IT stock. However, for FIIs investments, HCL Tech is the favourite IT stock of foreign institutional investors.

8. Tech Mahindra

After HCL Tech, Tech Mahindra is the second favourite IT stock of FIIs. Out of the total market cap of around Rs.68,444 Cr, almost Rs.26,260 Crore is invested by FIIs.

9. Asian Paints

• Asian Paints Ltd is India’s largest and Asia’s third largest paint company. The market cap of the company is around Rs.1.48 Lakh Crore, out of which FIIs have invested about Rs.24,700 Crore (16.7% stake of FIIs).
• Both DIIs and FIIs stake is increasing Q-o-Q in Asian Paints.

10. Mahindra & Mahindra (M&M)

• Only one automobile stock – M&M is there in top 10 favourite stocks of FIIs. The total market cap of Rs.68,531 Crore, FIIs are holding around Rs.23,600 Crore (almost 34.4%).
• It clearly indicates the FIIs confidence for the company. Also, the FIIs stake in M&M has increased by around 3% from March-19 to June-19, which is a very positive sign for the stock.

10 Stocks with highest FIIs holding in terms of percentage

In case of FIIs investment in terms of % holdings, There are 5 Large cap stocks, 2 Mid cap stocks and remaining 3 are Small cap stocks.

• 5 Large cap Stocks : HDFC Ltd, Shriram Transport Finance, IndusInd Bank, Axis Bank, Zee Entertainment
• 3 Mid cap Stocks : Indiabulls Housing Finance Ltd, PVR Ltd.
• 2 Small cap Stocks : Just Dial, Care Ratings, Cyient Ltd.

Summary

• In FIIs Holdings in terms of Amount Invested, Out of the total 10 most favourite stocks, top 6 stocks are Banking and Financial Services, next 2 are IT stocks, 1 paint stock and 1 is automobile stock.
• HDFC Ltd, Axis bank and IndusInd bank are the stocks present in both the list :
  1. Stocks with highest FIIs holding in terms of amount of investment
  2. Stocks with highest FIIs holding in terms of percentage