FPIs are betting on these stocks despite the market downturn

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Subscribe to enjoy similar stories. In a bold move that defied the broader market downturn, foreign portfolio investors (FPIs) strategically increased their stakes in select Indian companies during the December quarter, even as they pulled out ₹1 trillion from the markets in the third quarter of 2024-25. This surprising trend highlights FPIs’ continued confidence in the long-term growth potential of select stocks, even amid short-term volatility.

According to data from Prime Database, FPIs raised their holdings in 766 companies, with these stocks collectively rising an average of 1.87% during the quarter. Their most notable moves include Indiabulls Enterprises Ltd, in which they increased their ownership by 17.06 percentage points. This resulted in a remarkable 53.2% surge in its stock price, reflecting investors’ optimism in this stock.

That said, the company reported a decline in net sales to ₹13.32 crore in Q3FY25 from ₹15.03 crore in the year-ago period, along with a wider net loss of ₹2.13 crore, compared to a year ago's ₹1.84 crore. Home First Finance Co. (India) also saw significant FPI activity, with their stakes increasing by 12.34 percentage points even as the stock price dipped 11.03%.

This disconnect suggests continued investor confidence in the company's long-term prospects. While the stock underperformed, financials stood up: the company posted a 23.55% year-on-year rise in net profit in Q3 FY25, and total income grew by 35.4%. Assets under management (AUM) also grew strongly, reaching ₹11,949 crore, reflecting a robust 32.6% expansion on-year.