This year, an interesting game is going on in the world of small stocks in the Indian stock market. Foreign institutional investors (FII) are now betting on smallcap stocks that have given manifold profits to investors in 2025. This year 9 companies gave multibagger returns within the BSE Smallcap index, and in 7 of these, FIIS has quietly increased its stake. These include Force Motors, SML Isuju, Mangalore Chemicals, Camlin Fine Sciences, Gabriel India, Suven Life Sciences and Axiscads Technologies.
Smart money enters retail domain
Earlier smallcap shares used to be the choice of most retail investors, but now the increasing trend of foreign investors is clearly showing that smart money is going behind the shares that have already given great returns. According to the brokerage firm Share.Market, these 7 shares have achieved the Perfect Momentum Score 5/5 on five important parameters like Momentum, Value, Sentament, Volatirance and Quality.
Market analyst Om Ghwalakar says, FIS not only brings money, but also brings better governance, more liquidity and increased attention to investors. Often, his stakes seem to be a widespread interest of the market.
Which shares became FII’s favorite?
- 157% returns in Force Motors 2025 so far, FII stake increased from 8.36% to 9.77%. Despite the best Momentum and Quality Score (5/5) indicated from low volatility (2/5) that correction is also possible after a rapid surface.
- SML isuzu 147% returns, FII stake increased from 15.24% to 15.73%. Good valuation (3/5) and strong fundamentals (4/5) with Perfect Momentum (5/5).
- Suven Life Sciences Quality Score only 1/5 and despite the increase in deficit, FII stake increased from 0.25% to 0.58%. Suitable for high -risk investors.
- Despite the Camlin Fine Sciences expensive valuation (1/5), the share increased from 1.47% to 2.88%.
- Mangalore Chemicals & Fertilizers Strong Momentum (5/5) and attractive valuation (4/5), stake increased from 2.12% to 3.09%.
- Gabriel India Higher Quality Score (5/5) and Positive Service (4/5), stake from 5.23% to 5.97%.
- Axiscades Technologies stake is seen as a long -term outperformer, increased from 0.69% to 1.62%.
Should investors follow FII’s footsteps?
Experts believe that the growing share of FII can be a good way to choose investment, but only investing in it can be risky. According to Om Ghawalkar, FIIS usually invests after deep research, and their presence indicates the company’s infrastructure and improvement in governance. However, this data comes every quarter and sometimes it shows old interest, not the future.
Prannoy Aggarwal, Director and CEO, Stoxkart, say, the growing share of FII can be made a filter to find opportunities for investment, but it should be seen mixed with factors like the company’s earnings, strong balance sheets, good corporate governance and sector strength.
Disclaimer: This article is only for information and should not be considered as an investment advice in any way. TV9 India suggests its readers and spectators to consult their financial advisors before taking any decision related to money.