The FII Playbook 2026: Top Indian Stocks Attracting Global Capital

The FII Playbook 2026: Top Indian Stocks Attracting Global Capital

 

FIIs remain net sellers in early 2026 (₹7,608 Cr outflows first two days, extending 2025's ₹2.92 lakh Cr exit), shifting to quality largecaps amid high valuations and US rate concerns. High FII holdings signal conviction in resilient names like HDFC Bank (47.67% stake), ICICI Bank, Infosys, and Bajaj Finance, with themes in financials, IT, and telecom poised for inflows on rate cuts. Playbook favors dips in these for 2026 rebound.​

FII Trends 2026

FIIs hold 20-50% in top stocks despite outflows; recent buying in Siemens Energy, Waaree Energies, Hindustan Copper signals capex/renewables rotation. DIIs counter with ₹7.85 lakh Cr buys last year; 2026 themes: capex cycle, financial credit growth, digital infra.​

Top FII Favorites

• HDFC Bank: 47.67% FII (up 5.76% 6M), ₹14.6 lakh Cr mcap, post-merger stability.​

• ICICI Bank: High stake (3-5% rise), ROE 17%, retail leader.​

• Infosys: 29.58% FII (+2.14% 6M), IT recovery play.​

• Bajaj Finance: NBFC growth, tech lending.​

• Bharti Airtel: Telecom consolidation, 5G capex.​

Holdings Comparison

Stock	FII %	3M Change %	6M Change %	Mcap (₹ Cr) ​
HDFC Bank	47.67	47.67? Wait, error; high	5.76	14,56,458
ICICI Bank	~40+	Positive	Positive	10,26,053
Infosys	24.82-29.58	29.58	2.14	6,63,070
M&M	High	-	-	4,63,090
Axis Bank	High	-	-	3,99,486

Investment Playbook

Buy high FII stocks on dips (HDFC <₹900, ICICI <₹1,300); themes: financials (credit 15%), IT (US spend), renewables (Waaree). Risks: outflows if rupee weakens; allocate 40% largecaps. Track NSDL monthly data for turns.

Which sectors are FIIs favoring in 2026

FIIs favor Services, Metals, Oil & Gas, IT, and Telecom in late 2025 data into 2026, amid net outflows from BFSI, FMCG, and Power totaling ₹2 lakh Cr in 2025. These sectors saw selective inflows (e.g., Services +₹372 Cr, Metals +₹331 Cr in Dec 2025), signaling rotation to cyclicals on capex revival and AI/digital bets. Overall FII net selling persists (₹1,528 Cr Jan 8, 2026), but high holdings in Financials/IT persist.​

Recent Inflow Sectors

December 2025 marked turnarounds:

• Services: Top inflows ₹372 Cr (digital, e-commerce, AI/cloud).​

• Metals: ₹331 Cr (commodity rebound).​

• Oil & Gas: $259 Cr (energy security).​

• IT: $129 Cr (US AI reset, valuations).​

• Telecom: $27 Cr (5G ARPU hikes).​

Outflow Pressures

Heavy selling hit BFSI ($1,164 Mn Dec), Auto ($228 Mn), FMCG, Power, Healthcare (₹2 lakh Cr 2025 total). Reasons: High valuations, US yields, rupee weakness.​

2026 Outlook

Experts eye FII comeback favoring Financials (PSU banks risk-reward), Domestic Consumption, Cyclicals (Infra/Cap Goods), Healthcare. Triggers: Fed cuts 75bps, rupee depreciation boosting EMs, Nifty 12% returns vs S&P 4%. Infrastructure/Cap Goods attract via PLI/'Make in India'.