If you are going to invest in stocks and looking for some of the best stock options then you are at the best place. In this blog, We will cover the top 10 stocks with high FII holdings. FIIs are one of the most influential investors responsible for the growth of any stock. In the last 10 years, FIIs have poured a vast amount of money into the Indian Market which resulted in a great market rally.
What are Foreign Institutional Investors(FIIs)?
Foreign institutional investors or FIIs are organizations that invest money in other countries’ financial markets. These organizations can be insurance companies, mutual funds, and pension funds. These investors are based in one country and invest in the financial assets of another country.
FIIs help economies to grow. They provide liquidity and capital. Hence, FIIs have a pivotal role in the global financial market. By investing, they provide large amounts of funds. It directly influences the stock prices and other assets of that country.
FIIs are closely monitored by government and financial regulators. Their investment affects a nation’s currency, stock market, and the overall economy. Many countries established rules that regulate foreign investment in their country. SEBI monitors the Investment activities in India
Why FIIs are important in the Indian market?
Several reasons make FIIs an important asset for the Indian market.
FIIs bring a considerable amount of foreign capital. It helps to meet the investment needs of the country. This foreign investment supports economic growth. This provides funds for business, government projects, or infrastructure development.
FIIs provide liquidity. Their participation enhances trading volume. Therefore, it improves overall market efficiency. This liquidity promotes the smooth functioning of financial markets. It allows investors to trade easily.
FIIs bring global expertise to the Indian financial market. They invest in growth-oriented sectors. This attracts domestic and international investors.
FIIs create an impact on investor’s confidence. This further attracts more investment. All this contributes to the overall development and resilience of the Indian economy.
Top 10 Stocks with high FII holdings
Here is the list of top 10 stocks with high FII holdings:
1) Samhi Hotels
Establishment: Founded by Ashish Jakhanwala. It was incorporated in 2010. Samhi Hotels is a leading hotel firm in India
Portfolio: Samhi manages hotels from diverse segments. It Includes luxury hotels, mid-market, and upscale. Samhi collaborates with global hotel brands like IHG and Hyatt.
Business Model: The company develops new properties and Acquires existing hotels. Samhi is expanding itself In major Indian cities and tourist places. They invest In properties having good growth potential. It mainly focuses on catering the demand of quality accommodation.
| FII holding | 63.52% |
| PE Ratio | -16 |
2) Indian Bright Steel Company
Establishment: The Indian Bright Steel Company was established in 1960. The registered office is located in Maharashtra (India).
Portfolio: IBRICO produces steel bars. These bars are used where precision and aesthetic look are required. The company specializes in a wide range of steel products. These can be in any shape.
Business Model: IBRICO focuses on customer satisfaction and responsiveness. The company checks quality control measures in the manufacturing process. They maintain product quality, durability, and reliability.
| FII holding | 70.38% |
| PE Ratio | 0.3 |
3) Delhivery
Establishment: Delhivery was founded by Sahil Barua and his team in 2011. It is India’s largest logistics and supply chain company.
Portfolio: Delhivery offers a wide range of logistics services. It includes transportation, freight services, and warehousing. They offer their services to businesses requiring logistics solutions.
Business Model: The company’s business model aims to provide end-to-end logistic services. These solutions are efficient and reliable. Delhivery is evolving to meet the requirements of business in the e-commerce and retail sectors.
| FII Holding | 61.16% |
| PE Ratio | -112 |
4) 360 One Wam
Establishment: 360 ONE WAM was formerly known as IIFL Wealth Management Limited. It was founded by Karan Bhagat and Yatin Shah in 2008. Headquarters are in Mumbai, Maharashtra (India).
Portfolio: The company provides services related to finance and wealth management. Some of them are asset management, investment, estate planning, and lending.
Business Model: 360 ONE WAM works on the client-centric business model. It caters to individuals with high net worth. The company aims to build trust, transparency, and superior client services.
| FII Holding | 64.56% |
| PE Ratio | 44.44 |
5) CarTrade Tech
Establishment: Cartrade Tech Limited is an Indian automotive technology and online marketplace sector. It was founded in 2000 by Vinay Sanghi.
Portfolio: CarTrade connects sellers, buyers, and dealers. They offer vehicles like cars, bikes, and commercial vehicles. CarTrade also provides services like vehicle inspection, insurance, and warranty packages.
Business Model: CarTrade Tech works as an online automotive platform. It promotes buying and selling vehicles through its online platform. The company aims to enhance user experience. Apart from its core business, the company has also expanded into auto finance and insurance.
| FII Holding | 59.31% |
| PE Ratio | 273.50 |
6) Paytm
Establishment: Paytm is one of India’s notable digital payment platforms. It was founded in 2010 by Vijay Shekhar Sharma.
Portfolio: Paytm offers many services to its users. This includes mobile recharge, booking tickets, and online shopping. It also allows users to store money in a digital wallet.
Business Model: Paytm was initially started as a prepaid mobile recharge platform. Over the years, it has become a comprehensive payment platform. It provides a QR-based payment system. This helps small businesses to accept payment digitally.
| FII Holding | 58.24% |
| PE Ratio | -15.32 |
7) Redington
Establishment: Redington is a leading entity providing IT products and services. It was founded by R. Srinivasan and R. Ramachandran in 1993.
Portfolio: Redington has a strong distribution network. It includes logistics, warehousing, and value-added services. It caters to retailers, system integrators, and corporate clients.
Business Model: It primarily deals in the distribution of IT products, consumer electronics, and telecom services. Redington collaborates with global IT brands. The company is operated by experienced professionals in the IT sector.
| FII Holding | 57.87% |
| PE Ratio | 13 |
8) Five Star Business
Establishment: Five Star Business Finance Limited is an Indian non-banking financial company. It was founded in 1984 by D Lakshmipathy.
Portfolio: It specializes in financial services. The company offers various types of loans and financial services to small and medium enterprises. Its customer base involves business owners, traders, and service providers.
Business Model: Five Star Business Finance revolves around financial services catering to the needs of SMEs and MSMEs. With technology integration and customer-centric service, the company focuses on regulatory compliance and risk management.
| FII Holding | 58% |
| PE Ratio | 26.5 |
9) Max Healthcare
Establishment: Max Healthcare Limited is an Indian healthcare service provider. It was incorporated in 2000 by Analjit Singh.
Portfolio: Max Healthcare is known for its medical services and facilities. It has a wide network of hospitals across India. These hospitals offer advanced medical care in multiple disciplines.
Business model: The company’s business model revolves around providing healthcare services through a network of hospitals. They focus on delivering good quality patient care. Max Healthcare is dedicated to clinical excellence, innovation, and personalized treatment. Hence, maintaining its position in the healthcare sector.
| FII Holding | 56.92% |
| PE Ratio | 85.47 |
10) CAMS
Establishment: Computer Age Management Services (CAMS) is a mutual fund and financial service provider. It was established in 1988. Headquarters are in Chennai, India.
Portfolio: CAMS offers services to mutual funds and financial institutions. These services include investor services, transaction processing, and compliance support. CAMS offers its services to many mutual fund industries and investors.
Business model: CAMS acts as a support system for Indian mutual fund companies. It charges fees to these companies for its services. Their business model works on efficiency and reliability. They use technology and innovations to handle large amounts of data and transactions.
| FIIs Holding | 56.51% |
| PE Ratio | 58 |
Impact of FIIs on Stock Movement
- Liquidity: FIIs contribute significantly to market liquidity. This is due to their large investment capabilities. This liquidity leads to smooth trading. Now, investors can easily buy and sell their stocks. In times of market stress, FIIs reduce volatility and stabilize prices.
- Volatility: FIIs trading activities can influence stock prices. Large-scale buying can lead to increased stock prices. Also, many sales lead to price falls. This happens especially in smaller and less liquid stocks. This directly impacts short-term market sentiments and investors’ behavior.
- Currency fluctuations: FIIs can affect the exchange rate of local currency. This, in turn, affects exports and inflation. High FII investment can strengthen the local currency. As a result, it benefits imports. However, these activities can potentially hurt export competitiveness.
- Market behavior: FII activities influence market sentiments. Their trading pattern impacts the investor’s confidence. This ultimately leads to herd behavior. One leads and others follow the same pattern. All this deeply affects stock prices and market behavior.
- Sectoral effect: FIIs invest based on global economic trends. Their investment can benefit a specific sector whereas bring down the other sectors. This, in turn, leads to sectoral rotation. Their preferred sectors boost up, declining the stocks of the ones they exit.
Conclusion
Analysis of the above-listed stocks with high FII holdings highlights their significant impact on the stock market. FIIs investment develops confidence and assurance. This somewhat affects the overall market performance. However, more dependency on FII can lead to volatility. Investors should closely monitor FII activities.
