Foreign institutional investors are hoarding these 5 stocks—should you?

livemint.com:

Subscribe to enjoy similar stories. Foreign Institutional Investors (FIIs) have carved out a niche in India’s equity markets, often identifying opportunities that local investors might miss. These global heavyweights, armed with experience navigating both emerging and developed markets, offer a unique perspective—melding international business acumen with an in-depth understanding of India’s growth potential.

While domestic investors tend to focus on local factors, FIIs apply a broader, comparative lens. They measure Indian companies against global benchmarks, seeking businesses with scalable models, strong export potential, and governance standards on par with international peers. Their increasing stakes in select Indian firms reflect a strategic preference for those aligned with global ambitions.

Here is a look at the FII transactions in Indian equities over the last few years (till September 2024): Beyond financial metrics, FII investments symbolize confidence in India's evolving role in the global economy—a belief that the country is capable of producing world-class enterprises. Examining these investments offers more than stock-picking insights; it provides a glimpse into how global investors are betting on India’s future. Read this | DIIs have placed big bets on these three stocks. Should you, too? Below, we spotlight five companies where FIIs now hold over 55% of the available shares—clear indicators of where international investors see the next global success stories emerging from India.