Domestic Institutional Investors (DIIs) have been changing the course of the Indian stock markets in recent years. They seem not to be worried about any short-term market fluctuations, and not even the geopolitical issues, which have held back the markets for quite some time now.
Rather than restricting purchases of domestic equities, or in fact exiting like Foreign institutional investors (FIIs), DIIs are consistent with their buying spree. During the July-September quarter, they poured in a net investment of ₹1.64 lakh crore into domestic equities, and in this current quarter until 26 November 2025, they have already made a net equity investment of ₹52,628 crore. (Source: SEBI)
DIIs’ continuous investments are actually helping the market stay calm even when there is heavy selling pressure from the FIIs. While earlier Indian markets were highly dependent on foreign investments, and the course of the market was decided by their investments, now it is the domestic investors who are taking charge.
While DIIs raised their stake in many stocks significantly during the Q2FY26, in this article, we will focus on three such stocks, where they were already holding a stake above 50% before the September quarter, and further increased the stake during the quarter.
Let’s try to figure out why these stocks are DIIs’ favorites.
#1 Crompton Greaves: The Premiumization Pivot Paying Off
Crompton Greaves Consumer Electricals Ltd. is a leading consumer durable company in India with a legacy of over 75 years. Crompton is known for its variety of fans, LED lamps, lights, panels, even streetlights, floodlights, fluorescent lights, and others. The company also offers pumps ranging from residential to agricultural, and now they have entered the solar market, offering solar pumps, solar rooftops, apart from other electrical appliances.
During the July-September quarter, DIIs increased their stake in the company by 2.31% points, taking the total holding to 61.24% by the end of the quarter.
So, what is driving DIIs to continuously raise their stake in this electrical and appliances manufacturer?
Crompton 2.0
The company is evolving robustly with the premiumization of its products, innovation, brand investments, and more. The demand for premium fans has increased by 180 basis points (bps) to 25.4% Year-on-Year (YoY).
They partnered with Sania Mirza during the quarter for Ameo Fresh Nutri Blender, which is one of the prominent brand investments.
Coming to the innovation, which is the main motto of Crompton 2.0, during the quarter, they launched 89 new projects across different product lines.
For the first time, Crompton launched a 750-watt food processor, diversifying their product base and deepening their reach in the kitchens.
For research and development, they opened a Validation Laboratory in Baroda during the quarter.
On Amazon, Crompton’s Butterfly Mixer grinders, pressure cookers, and table-top wet grinders are ranking at #1, giving the required boost to their e-commerce business segment. Under Crompton Butterfly, a premium range of products was launched during the quarter under the “Idea First Series,” it garnered immense popularity across categories.
Solar Rooftop Debut
Crompton is expanding their solar product range, and during Q2FY26, it made a superb debut in the solar rooftop market. They already added orders worth ₹500 crore to their solar rooftop order book, which is for around 50,000 solar units.
The company expects to generate a revenue of around ₹2,000 crore from the solar pumps and solar rooftops within the next two years.
Financials
Sales increased from ₹1,896 crore in Q2FY25 to ₹1,916 crore in Q2FY26, growing at 1.02% YoY. However, the company witnessed a sharp decline in its net profit during the quarter from ₹128 crore to ₹75 crore YoY.
DIIs increased their stake in the company in spite of these poor numbers. Perhaps, they are able to see through this poor performance and expect better times ahead.
Valuation
The stock is trading at a Price/Earnings (PE) ratio of 35.5x, which is significantly lower than the industry median of 52.4x, indicating a relatively cheaper valuation of the company.
1-year Share Price Chart of Crompton Greaves Consumer Electricals Limited
#2 MCX: A Monopoly Play on Market Volatility
Multi-Commodity Exchange of India Ltd. (MCX) is the largest commodity exchange in India, and also the first exchange to be listed. It holds 100% market share in the precious metals, stones, and base metals segment, and also in the index futures segment, and 99.42% in the energy commodity segment.
DIIs have raised their stake in MCX by 1.41% points during the July-September quarter, taking the total holding to 60.5% by the end of Q2FY26.
New Launches
One of the factors that perhaps kept the DIIs hooked to MCX is their back-to-back new launches. During the July-September quarter, the commodity exchange launched monthly options on silver 30 KG and silver Mini 5 kg.
Note: In the month of October 2025, it launched the MCX BULLDEX index option as well. It is an option that has gold 1 kg and silver 30 kg as the underlying assets. It is cash-settled and restricted for FPI investment.
Base Metals Logistics Simplification
Another reason for sustained interest in the company may be the simplification in logistics to decrease friction and help in building better liquidity. Over time this will help strengthen the business. For this, the exchange has been assigning one warehouse for one metal. For instance, the Thane warehouse has been assigned for Nickel futures contracts, which became effective from September’s expiry contracts onwards. Similarly, Copper has been assigned one warehouse, and it will be effective from December contracts onwards. For aluminum, 3 warehouses have been assigned, while Zinc is still under review.
Electricity Derivatives Gaining Traction
MCX’s unique innovation in electricity derivatives is gaining initial traction with around average daily turnover (ADT) of ₹34 crore, with around 2,000 average daily trades.
As per the management, volumes could have been a bit higher than the current volume; however, the extended monsoon took a toll on the same.
Financials
Revenues at MCX jumped from ₹286 crore in Q2FY25 to ₹374 crore in Q2FY26, an increase of 31.04% YoY. The net profit surged by 29% YoY from ₹154 crore to ₹197 crore during the period.
Valuation
The stock is trading at a PE of 75.7x, which is higher than the industry median of 65.7x.
1-year Share Price Chart of Multi-Commodity Exchange of India Limited
#3 Coforge: The Order Book That Defies the IT Slowdown
Coforge Ltd. is a leading Information technology (IT) provider and a top software exporter from India with clients across the globe. Coforge specializes in offering digital transformation and technology services. It primarily offers consulting, implementation, and support solutions for cloud computing, analytics, cybersecurity, artificial intelligence, machine learning, and more.
DIIs increased their stake by 2.55% points in this IT stock, taking the total holding to 54.9% during Q2FY26, when the overall IT sector was highly volatile, and the Nifty IT index declined by 13.6%. (Source: NSE)
So, what made DIIs invest so heavily in this IT stock when the overall sector was declining?
Extraordinary Order Book
One of the reasons is perhaps Coforge’s excellent order book. During the quarter, the company received orders worth ₹4,592 crore and added 9 more clients. The company successfully reduced the client concentration as well as increased large account relationships. In this quarter, out of the total orders, there are 5 large orders. The total order book, which is executable in the coming 12 months, stood at ₹14,564 crore as on 30 September 2025.
Diversification of Services
Another factor that might have kept the DIIs hooked to this stock is its excellent diversification. Coforge offers a wide range of services, and thus diversification often helps it withstand volatility in parts of the business.
While a major share of revenue comes from the engineering services, the other services, like Data and integration, intelligent automation, cloud, and infrastructure management, also have a significant share in the revenue generation.
For instance, during Q2FY26, 46.1% of the services rendered were related to engineering, 21.2% were for data and integration, 17.1% were for cloud and infrastructure management, and 7.8% each for intelligent automation and business process management.
It is not only about diversified services, but Coforge has also diversified its business across geographies and serves multiple sectors, which further helps it grow and be resilient.
Financials
The sales of the company jumped from ₹3,026 crore in Q2FY25 to ₹3,986 crore in Q2FY26, growing at 31.7% YoY. The net profit for the period went up from ₹234 crore to ₹425 crore, growing at 76% YoY. This can be another reason for DIIs continuously pouring money into this company.
Valuation
The stock is trading at a PE of 56.2x while the industry median is just 25.2x, indicating a super-premium valuation.
1-year Share Price Chart of Coforge Limited
Wrapping up
DIIs have been a strong force behind the growing Indian stock market lately, and these above picks by them indicate the same. They are probably looking beyond sales and profit margins. They are perhaps investing in the prospects these businesses hold. However, only time could tell whether they would hold on to these stocks or not, given the rising volatility in the market.
We have relied on data from www.Screener.in throughout this article. Only in cases where the data was not available have we used an alternate, but widely used and accepted source of information.
The purpose of this article is only to share interesting charts, data points, and thought-provoking opinions. It is NOT a recommendation. If you wish to consider an investment, you are strongly advised to consult your advisor. This article is strictly for educative purposes only.
Maumita Mitra is a seasoned writer specializing in demystifying the world of investment for a broad audience. She has a keen eye for detail and a knack for explaining complex financial concepts in the simplest manner possible.
Disclosure: The writer and her dependents do not hold the stocks discussed in this article.
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