FII Buying Focuses on Nestle, Eternal, Tech Mahindra, Groww, Yes Bank Amidst Market Sell‑Off
Foreign institutional investors (FIIs) have largely remained net sellers of Indian equities, off‑loading close to ₹3 lakh crore in 2026. Nevertheless, a handful of stocks continued to attract strong FII inflows, driven by robust earnings growth and favourable valuation metrics. Indian benchmark indices extended their decline for a fourth consecutive day on Friday, heading for a weekly loss, while a sharp rebound in crude oil prices this month has once again raised fears of sticky inflation. Investors are navigating Q2FY27 earnings for better opportunities in a rather dull market scenario.
Nestle India shares have rallied 33% from April 2 to August 10, despite a recent free fall after FSSAI’s notice on infant food branding. FII stake increased from 9.74% in Q4FY26 to 11.7% in Q2FY27. For the quarter ended September 2026, revenue grew 20% YoY to ₹6,782 crore, driven by double‑digit volume growth. EBITDA margin remained healthy at 23.8%, and profit after tax rose 36% YoY to ₹1,026 crore. The stock trades at a PE ratio of 68x, lower than its five‑year median of 75x.
Eternal, parent of Zomato and Blinkit, saw its FII stake rise to 33.01% in Q2FY27 from 29% in the previous quarter. The shares rallied as much as 30% during the quarter, outperforming broader market sentiment. The company delivered stellar results for the quarter ended September 2026, with net profit rising 92% to ₹125 crore and revenue up 78%. The inflow of foreign capital and strong earnings underpin the 30% share rally.
Tech Mahindra’s IT vertical, Tech Mahindra, trades near 52‑week highs, shrugging off sectoral headwinds. For the quarter ended September 2026, revenue grew 2.0% QoQ and 6.8% YoY, while EBIT margin improved ~40 bps QoQ and 260 bps YoY to 14.8%. Revenue visibility improved, led by 25% growth in new deal wins. FIIs increased their stake from 18.59% in Q4FY26 to 20.76% in Q2FY27, and shares rallied 25% from March lows to September 30, 2026.
Billionbrains Garage Ventures Ltd, brand owner of Groww, saw FII stake jump from 2.5% in Q4FY26 to 10.9% in Q2FY27. Despite broader sector pessimism, the company delivered robust earnings growth: revenue jumped 44% YoY to ₹1,541 crore, EBITDA surged 60% YoY to ₹969 crore, and net profit rose 54% YoY to ₹725 crore. Shares remained largely muted amid regulatory uncertainty, yet FII interest grew steadily.
Yes Bank, a key private‑sector lender, saw shares drop 23% in six trading sessions after the Supreme Court upheld the High Court’s judgement on the bank’s write‑down of AT‑1 bonds worth ₹8,415 crore. The bank delivered strong growth in net profit at 65% YoY to ₹1,080 crore, led by a 22.7% YoY increase in net interest income. FIIs have consistently increased holdings, with the stake now at 47.8% in Q2FY27 versus 44.9% a year earlier. Investors will monitor the court’s order impact on Q3FY27 earnings.