Foreign institutional investors (FIIs) net bought shares worth ₹13,970 crore in the second quarter of the current financial year (Q2 FY27), according to data compiled by the National Securities Depository Ltd (NSDL). This purchase followed net sales of ₹1,43,150 crore in Q1 FY27 and ₹1,31,122 crore in the final quarter of the previous financial year (Q4 FY26). Rising U.S. bond yields, depreciation of the Indian rupee, higher crude oil prices, domestic capital gains tax structures and mixed corporate earnings have dampened FII sentiment toward Indian equities, analysts noted. Flight of funds toward AI and technology‑heavy markets has also weighed on sentiment toward emerging markets like India, analysts added.

Despite a subdued trend of FII investors toward Indian markets, they have been consistently raising their stake in 27 companies over the last four quarters, data from Ace Equity showed. The top five companies where FIIs raised their stake for a fourth straight quarter are Bharat Heavy Electricals Limited (BHEL), Max Financial Services, GMR Airports, Bank of Maharashtra, and RR Kabel. Each of these firms saw a measurable increase in FII ownership, reflecting selective confidence in specific sectors despite broader market headwinds.

Bharat Heavy Electricals Limited (BHEL) saw FIIs raise their stake to 9.94% at the end of Q2 FY27, up from 9.53% in the previous quarter. In the September quarter of the previous financial year, FIIs owned 6.23% of the company. A total of 594 foreign portfolio investors category I own stake in BHEL. Max Financial Services experienced a rise in FII ownership to 48.61% at the end of the September quarter, up from 48.06% in the previous quarter. During the September quarter of the previous financial year, FIIs held 44.78% of the company.

GMR Airports saw its FII stake rise to 22.95% at the end of Q2, up from 21.74% in the previous quarter. In the same period last year, FIIs owned 17.08% of the company. Fidelity Advisor International Capital and GQG Partners Emerging Markets Equity Fund are prominent FPIs, holding 1.73% and 1.65% stakes respectively in GMR Airports. Bank of Maharashtra, a state‑run lender, saw its FII stake rise to 6.5% at the end of the September quarter, up from 5.82% in the previous quarter. FIIs owned 2.35% of the bank in the September quarter of the previous financial year, with 205 FPIs category I holding stake in the bank.

RR Kabel, a wires and cables maker, experienced a rise in FII ownership to 12.51% at the end of the September quarter, up from 10.67% in the previous quarter. FIIs owned 8.17% of RR Kabel in Q2 FY26, with Government Pension Fund Global holding a 3.07% stake, according to BSE data. Other companies that saw FPIs raise their stake for a fourth quarter in a row include Indian Bank, J&K Bank, ONGC, Apar Industries, CCL Products, Biocon, JP Power Ventures, Tata Technologies, LIC, Aether Industries, Tenneco Clean Air, IREDA, Titagarh Rail Systems, Indian Overseas Bank, Honeywell Automation, Lupin, Himadri Speciality Chemical and SAIL.

The data indicates that while overall FII buying has been restrained, selective allocation continues in sectors such as infrastructure, defence, aviation, banking and manufacturing. The consistent stake increases across 27 companies suggest that FIIs are maintaining a long‑term view on specific Indian equities, even as macro‑economic pressures and global market flows influence broader investment sentiment.