attitude of foreign investors
The September quarter brought many surprises for the market and investors. The tariff war escalated further, Trump suddenly increased the fee for H-1B visa, the first quarter of FY 2026 reported a sluggish earnings report and the Indian rupee also witnessed a decline. Due to all these reasons, there was pressure on the Indian market and foreign institutional investors (FIIs) (i.e. big foreign investors) sold heavily.
FIIs sold Indian shares worth Rs 76,609 crore in the September quarter. They remained net sellers not only in equities but also overall in this quarter. This figure is almost double the investment made by FIIs in the June quarter. However, there were some companies in which FIIs on the contrary increased their stake and it reached above 25%. That is, when they were selling in the rest of the market, they bought rapidly in these selected shares. Let’s see why this happened.
Yes Bank Limited
Yes Bank was the company in which FIIs invested the most in the September quarter. His stake increased by 20% to 44.95% by the end of the second quarter. The main reason for this was the purchase of a major part of the company by a large foreign investor Sumitomo Mitsui Banking Corporation (SMBC) with a 24.2% stake. Now SMBC is the largest shareholder of the bank and may have an important role in the management of the bank going forward.
Paisalo Digital Limited
Paisalo Digital, which is a non-deposit taking NBFC. It was ranked second in the FII buying list. In the September quarter, FIIs increased their stake by 12.81% and it took the total to 20.89%.
Medi Assist Healthcare Services Limited
Medi Assist, which provides health-tech and insur-tech (digital services related to health and insurance), was ranked third among FIIs’ preferred companies. Foreign investors increased their stake in it by 11.94% to 25.83%.