Foreign Institutional Investors may have reduced overall ownership in Indian equities, but JM Financial stated in its recent report that overseas funds have been putting money into select sectors and stocks tied to telecom, capital goods, metals and infrastructure between December 2023 and March 2026.
The brokerage firm’s latest study on ownership trends showed Bharti Airtel, GE Vernova T&D, Adani Ports and Special Economic Zone, Hindalco Industries and several industrial names emerging as preferred bets even as FIIs continued to pare stakes in banks, consumer stocks and technology companies.
JM Financial on FII holding in key stocks
JM Financial studied changes in foreign institutional investor holdings across nearly 190 companies and found that while FIIs reduced stakes in 112 stocks, buying remained concentrated in telecom, capital goods and select industrial counters.
The report identified 360 ONE, GE Vernova T&D, Bharti Airtel, One 97 Communications and InterGlobe Aviation among companies witnessing strong increases in FII ownership between December 2023 and the latest shareholding data available till March 2026.
At the sector level, capital goods attracted net inflows of $2,894 mn during the one-year period from March 2025 to March 2026, while telecom drew $2,914 mn in inflows. Metals also remained in positive territory with net inflows of $2,247 mn.
JM Financial said Foreign Institutional Investor ownership in Indian equities has fallen to its lowest level in more than a decade even as Domestic Institutional Investors absorbed a large part of the selling through steady mutual fund inflows.
The brokerage firm’s report showed Foreign Institutional Investor ownership in Indian equities declined to 14.7% in April 2026 from 19.9% in April 2016.
Bharti Airtel, GE Vernova and Adani Ports among preferred FII bets
Bharti Airtel emerged among the strongest accumulation stories in JM Financial’ report.
Foreign Institutional Investor holding in the telecom major rose to 28.8% from 22.7% between December 2023 and the latest available data in 2026. The company also featured among stocks where FII selling remained limited despite strong earnings growth expectations.
JM Financial estimated Bharti Airtel’s earnings per share CAGR at 46% between 2023 and 2026.
The brokerage firm said telecom remained one of the few sectors that continued attracting overseas money through the past year.
“Telecom also recorded a net positive inflow of $2,914 mn despite some weak months,” JM Financial said in the report.
GE Vernova T&D also saw one of the sharpest jumps in Foreign Institutional Investor ownership during the period under review. FII holding in the company climbed to 18.5% from 0.7%, while Domestic Institutional Investor ownership increased to 22.7% from 15.8%.
The report also pointed to continued interest in infrastructure-linked and manufacturing themes.
“Despite general exits from consumption and financials, steady inflows into Capital Goods suggest continued FII conviction in India’s manufacturing and infrastructure cycle,” the brokerage firm said.
Adani Ports and Special Economic Zone also featured among stocks where overseas ownership held steady despite broader selling across the market.
Foreign Institutional Investor ownership in Adani Ports rose to 13.3% in March 2026 from 12.8% in December 2025.
JM Financial said the buying trend showed FIIs were still selectively adding exposure in sectors with global earnings visibility and infrastructure-linked growth.
JSW Steel, Hindalco and metals stay on FII radar
JM Financial said metals emerged among the few sectors that attracted net inflows during the one-year period from March 2025 to March 2026.
The report pegged net Foreign Institutional Investor inflows into metals at $2,247 mn during the period.
Within large-cap metal names, Hindalco Industries recorded an increase in Foreign Institutional Investor ownership to 30% in March 2026 from 28.2% in December 2025.
JSW Steel also stood out among companies where FII selling remained limited despite strong earnings growth expectations.
JM Financial estimated the company’s earnings per share CAGR at 30% between 2023 and 2026, while Foreign Institutional Investor ownership declined by only 1 percentage point.
The brokerage firm said the trend indicated that overseas funds were becoming selective instead of exiting every cyclical sector.
“The big picture is a defensive tilt. The sectoral shift is clear. FIIs are moving toward earnings-resilient, globally comparable sectors and away from domestic consumption, commodities, and rate-sensitive financials,” JM Financial said.
The report’s sectoral data showed communication services exposure rose to 28.8% in December 2025 from 22.7% in December 2023, while healthcare exposure increased to 25.5% from 23.2% during the same period.
InterGlobe Aviation, One 97 and 360 ONE see strong FII accumulation
InterGlobe Aviation featured among companies witnessing a steady rise in Foreign Institutional Investor ownership.
FII holding in the company rose to 25% from 18.7% between December 2023 and the latest available data.
JM Financial also identified One 97 Communications among companies witnessing a notable increase in overseas ownership. FII holding in the company climbed to 26.6% from 18.6%.
360 One Wam recorded the sharpest rise in Foreign Institutional Investor ownership among all companies tracked in the report.
FII holding in the company surged to 38.1% from 15.3%, marking an increase of 22.8 percentage points.
The brokerage firm said selective buying continued even as broader market ownership trends weakened.
“FIIs increased their stake in 78 stocks, indicating selective buying despite the broader selling trend,” JM Financial said.
Axis Bank, Trent and KPIT Technologies see sharp selling pressure
While FIIs continued buying select industrial, telecom and metal names, the report showed broad selling across banking, consumer and technology stocks between December 2023 and March 2026.
KPIT Technologies recorded the steepest fall in Foreign Institutional Investor ownership among the stocks tracked in the report.
FII holding in the company dropped to 13.6% from 26.5% in December 2023, a decline of 12.9 percentage points.
Axis Bank saw Foreign Institutional Investor ownership fall to 41.2% from 52.9% since December 2023, marking a decline of 11.7 percentage points.
Trent also witnessed heavy selling. FII ownership in the retailer fell to 15.6% from 25.9%.
Patanjali Foods saw Foreign Institutional Investor ownership drop to 0% from 10.9%, while Jubilant FoodWorks recorded a fall to 18.6% from 27.8%.
JM Financial said the selling pattern pointed to a broader reduction in exposure across sectors linked to domestic consumption and rate-sensitive businesses.
“FIIs reduced holdings in 112 out of ~190 stocks, making selling the dominant market trend during the period. The breadth of this decline indicates a broad-based and systematic reduction in exposure rather than isolated stock- or sector-specific exits,” the brokerage firm said.
FII Ownership Shift in Indian Equities
The report also noted that earnings growth alone did not explain the exits.
“Some of the strongest EPS compounders are witnessing the heaviest FII selling, indicating that exits are not driven solely by earnings,” JM Financial said.
Banking and information technology see biggest outflows
Banking, financial services and insurance stocks recorded the sharpest sectoral reduction in Foreign Institutional Investor ownership during the three-year period tracked in the report.
JM Financial said FII exposure to financials fell to 35.5% in December 2025 from 40.4% in December 2023.
“Financials saw the sharpest absolute fall. The largest drawdown in absolute terms was Financials, still the highest FII-held sector but clearly being trimmed,” the brokerage firm said.
The report also pointed to severe monthly withdrawals from the sector during the March 2025 to March 2026 period.
“March 2026 stands out as a particularly brutal month, with BFSI alone seeing $6,488 mn of outflows,” JM Financial said.
Information technology recorded the deepest annual outflow among all sectors at $9,222 mn between March 2025 and March 2026.
“The IT sector’s persistent outflows across almost every single month, with no meaningful recovery month,” the brokerage firm said.
Still, Domestic Institutional Investors continued absorbing a large part of the selling pressure.
“In 39 out of 41 Nifty stocks where FIIs sold, DIIs increased their stake, acting as a systematic buyer of every FII exit,” JM Financial said.
Conclusion
JM Financial said the latest ownership data points to a market where Foreign Institutional Investors are no longer taking broad-based India calls. Instead, overseas funds are concentrating money in telecom, infrastructure, capital goods and select industrial names while steadily reducing exposure to banking, consumer and technology stocks. Even as foreign ownership slips to multi-year lows, strong Domestic Institutional Investor inflows continue to cushion the selling across frontline Indian equities.
Disclaimer: The following report summarizes specific institutional ownership shifts and sector-based analysis provided by JM Financial. These findings are intended for informational purposes and do not constitute an offer, solicitation, or recommendation to buy, sell, or hold any security. Investing in equities involves market risks, including the potential loss of principal; readers should consult a SEBI-registered investment advisor before making any financial decisions based on these trends.
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