Foreign Institutional Investors (FIIs) continue to play a major role in the Indian equity market, influencing liquidity, valuations, and market sentiment across sectors. A recent analysis of shareholding patterns for March 2025 and March 2026 highlights 15 Indian stocks where FII ownership remains significantly higher compared to Domestic Institutional Investors (DIIs), making these companies potentially more vulnerable to sharp market reactions if foreign investors reduce exposure.
The data compares FII and DII holdings over a one-year period and also measures the current FII-to-DII ownership ratio. Stocks with a higher ratio indicate greater dependence on foreign institutional capital relative to domestic institutional support.
At the top of the list is GMR Airports, where FII ownership increased from 15% in March 2025 to 20% in March 2026, while DII ownership rose from 3% to 5% during the same period. The stock currently has the highest FII-to-DII ratio of 4.4, indicating a strong dominance of foreign investors in the shareholder base.
Torrent Pharma ranks second with an FII-to-DII ratio of 2.5. FII holdings remained steady at 16% over the year, while DII ownership stayed unchanged at 6%, reflecting continued foreign institutional preference in the pharmaceutical sector.
JSW Steel follows with a ratio of 2.3. FIIs slightly reduced their holdings from 26% to 25%, while DII ownership increased from 10% to 11%. Despite the decline in foreign ownership, FIIs still maintain a substantially larger position compared to domestic institutions.
HDFC AMC recorded a ratio of 2.1, with FII holdings rising from 21% to 24%, while DII ownership declined from 16% to 11%. This divergence highlights increasing foreign institutional confidence despite reduced domestic participation.
Eicher Motors, Marico, Hero MotoCorp, and Apollo Hospitals each reported an FII-to-DII ratio of approximately 2. FIIs continued increasing exposure across several of these companies during the period.
Eicher Motors saw FII holdings increase from 25% to 27%, while DII ownership declined from 16% to 13%.
Marico witnessed foreign ownership rising from 22% to 24%, while DII holdings slipped from 13% to 12%.
Hero MotoCorp recorded an increase in FII holdings from 27% to 31%, while DII ownership decreased from 18% to 16%.
Apollo Hospitals maintained stable FII ownership at 43%, while DII holdings slightly improved from 21% to 22%.
Among metal companies, Hindalco also showed elevated foreign participation. FII ownership increased from 32% to 34%, whereas DII holdings declined from 23% to 19%, resulting in an FII-to-DII ratio of 1.8.
Adani Enterprises, HDFC Bank, and Bajaj Finance each recorded a ratio of 1.6.
Adani Enterprises saw a slight reduction in FII holdings from 12% to 11%, while DII ownership remained stable at 7%.
HDFC Bank witnessed foreign holdings decline from 55% to 52%, while DII ownership increased from 29% to 32%, indicating stronger domestic institutional participation despite continued heavy foreign ownership.
Bajaj Finance maintained stable FII ownership at 21%, while DII holdings dipped slightly from 14% to 13%.
Bharti Airtel and Wipro both reported an FII-to-DII ratio of 1.5.
Bharti Airtel saw FII ownership increase from 25% to 28%, while DII holdings improved from 18% to 19%.
Wipro’s ownership structure remained unchanged, with FIIs holding 11% and DIIs holding 7%.
ICICI Bank rounded out the list with the lowest ratio among the 15 stocks at 1.4. FIIs reduced their stake from 56% to 52%, while DII ownership increased from 34% to 37%, suggesting a gradual balancing between foreign and domestic institutional ownership.
The data reflects a broader trend in Indian equities where certain large-cap stocks continue to rely heavily on foreign institutional participation. While elevated FII ownership can support liquidity and valuations during bullish periods, it can also increase downside risk during phases of global uncertainty, rising bond yields, geopolitical tensions, or risk-off sentiment.
Market experts often monitor FII-to-DII ownership ratios because stocks with heavy foreign institutional concentration can witness sharper volatility if overseas investors begin reallocating capital away from emerging markets.
At the same time, increasing DII participation in several banking and financial stocks indicates growing domestic institutional strength, which may help stabilize markets during periods of foreign outflows.
Investors are expected to closely track upcoming global macroeconomic developments, U.S. Federal Reserve policy signals, bond market movements, and geopolitical risks, as these factors could significantly influence future FII flows into Indian equities.
Disclaimer:
This article is for informational and educational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Investors should conduct their own research or consult a qualified financial advisor before making investment decisions.
