Discover how to identify fundamentally strong stocks using FII holdings. Learn why FIIs increasing stakes by over certain percentage signals long-term potential and explore technical analysis of these opportunities.
Introduction
In the world of investing, tracking what large institutional players are doing—especially Foreign Institutional Investors (FIIs)—can provide valuable insight for retail investors. FIIs are considered smart money, and when they increase their stake in any listed company on NSE/BSE by certain percentage, it's not just a random decision. It's the result of deep research and strong belief in the company's future potential.
In this article, we highlight a set of stocks where FIIs have recently raised their holdings by certain percentage . Alongside this, we also provide supporting technical analysis to help you understand why you should keep these stocks on your radar.
Why FII Holding Matters
Foreign Institutional Investors manage huge sums of global capital. They do not take investing decisions emotionally or based on social trends. Instead, they deploy sophisticated research teams to analyze companies thoroughly before allocating funds.
When FIIs increase their stake in a company:
It reflects growing confidence in the company's fundamentals.
It indicates a potential for long-term growth.
It attracts attention from mutual funds, domestic institutions, and retail investors.
For retail investors, this creates an opportunity to follow the footprint of smart money with informed decisions, rather than speculating blindly.
Let's go for the Stocks Below:
GRM Overseas:
Market Cap: ₹2203
crore, PE=35.36,
Change in FII
Holding: 1.17%,
Current FII
Holding: 1.89%
Why FIIs Like It: Modest 5.94%
profit growth despite an 11.7% drop in sales.
Healthy ROCE of 13.5% and decent scale in the rice export
business.
Key Signal: FII stake up 1.17% this quarter.
From the weekly chart of GRM Overseas we can see
that the stock is above 20 EMA, RSI above 65 which indicates strong momentum.
The stock is in uptrend for a long time and heavy volume increase noticed. See the
chart below:
Uravi Defence &
Aerospace:
Market Cap: ₹528
crore, PE= 226,
Change in FII
Holding:1.65%,
Current FII
Holding: 6.47%
Why FIIs Like It: Defence
sector tailwinds and strong order book potential. Very high P/E of 226.59 reflects
growth expectations.
Key Signal: FII holding
climbs to 6.47%.
From the weekly chart of the stock, we can see that
the stock is above 20 EMA (taking support this week), RSI is above 50, and
volume for the last two months has increased. See the chart below:
Quest Capital:
Market Cap: ₹340
crore, PE= 17,
Change in FII
Holding:2.57,
Current FII
Holding: 5.48%
Why FIIs Like it: 31.6%
profit growth and massive 50.69% jump in sales.
Attractive P/E of 16.97 with ROCE at 2.2% — still room for
efficiency gains.
Key Signal: FII stake
rises from 2.57% to 5.48%.
From the weekly chart of the stock, we can see that
the stock in long time down after making a high of ₹565 around. RSI is
also in negative below 40. Inspite of the great negativity FIIs still
increased their stake in the stock. See the chart below:
Dugar Housing:
Market Cap: ₹81
crore, PE=3.42,
Change in FII
Holding:22%,
Current FII
Holding: 22.00%)
Why FIIs Like It: High FII
confidence — 22% stake. Current results show losses, but possible
future real estate projects could be the reason for strategic positioning.
Key Signal: Large,
long-term FII presence.
From the weekly chart of Dugar Housing, we can see
clearly that FIIs completely captured the stock after increasing 22% stake on
it. Positive looking chart, but some cautious steps needed while entering into
the stock. See the chart below:
Bottom Line:
FII buying can signal confidence, but not all these stocks are the same. Some have strong growth stories, while others are high-risk turnarounds. Always pair FII trends with your own research before investing. If possible analyze stocks fundamentally as well as technically before taking any financial decisions.
Disclaimer: The information provided on MoneyWiseMind is for educational and informational purposes only. It is not intended to be financial advice, and you should not rely on it as such. Before making any financial decisions, you should consult a licensed financial advisor.
