FIIs Increase Stakes in 9 Midcap Stocks for Four Consecutive Quarters; Shares Gain Up to 70%

Foreign institutional investors (FIIs) have continued to show selective confidence in India’s midcap segment, increasing their holdings in a group of companies for four consecutive quarters through June 2026. While foreign investors have remained cautious toward Indian equities overall, their sustained buying in specific midcap counters highlights areas where they appear to see longer-term potential.

According to data compiled by ACE Equity and reported by ETMarkets, around 15 BSE midcap companies recorded consistent increases in FII ownership across the four quarters ended June 2026. Nine of those stocks delivered positive returns ranging from 10% to as much as 70% over the past year.

The trend is notable because FII activity has not been uniformly positive across the Indian market. Instead, foreign investors appear to be concentrating their investments in selected companies rather than making broad-based purchases.

Hitachi Energy India leads the gainers

Hitachi Energy India emerged as the strongest performer among the nine stocks highlighted in the data. Its shares climbed about 67% over the past year, moving from around ₹18,911 to ₹31,650.

At the same time, FII ownership increased steadily from 9.67% in September 2025 to 10.69% in December, 11.68% in March 2026 and 12.44% by June 2026.

The consistent rise in foreign ownership suggests that institutional investors maintained their interest in the company through multiple quarters rather than making a one-time investment.

Bank of Maharashtra sees strong foreign participation

Bank of Maharashtra was another major beneficiary of rising FII interest. The stock gained roughly 65% during the year, rising from approximately ₹52 to ₹86.

Foreign ownership increased from 2.35% in September 2025 to 5.82% by June 2026. The increase was particularly visible between September and December, when FII holding rose to 4.92%.

The data indicates that overseas institutional investors gradually expanded their exposure to the banking stock across the four quarters.

Power-sector stocks attract FIIs

Energy and power-related companies also featured prominently among the stocks receiving sustained foreign buying.

GE Vernova T&D India gained around 59% over the year, with its share price rising from nearly ₹2,712 to ₹4,325. FII ownership climbed from 16.14% in September 2025 to 22.89% in June 2026.

Steel Authority of India (SAIL) also recorded a substantial increase. Its shares advanced approximately 54%, from ₹128 to ₹197, while FII holding rose from 3.76% to 7.09% during the same four-quarter period.

The continued presence of power and industrial companies among the preferred stocks indicates that foreign investors have been selectively participating in India's broader industrial and infrastructure-related themes.

Financial stocks remain on the radar

L&T Finance recorded a 38% gain over the past year, with the stock moving from approximately ₹228 to ₹314.

FII ownership increased from 6.40% in September 2025 to 7.71% in June 2026. Although the rise in foreign ownership was smaller than that seen in some of the other stocks, the increase was consistent across all four quarters.

Indian Bank also posted a strong performance, with its shares gaining about 33% over the year. Its FII holding rose from 4.68% in September 2025 to 6.16% by June 2026.

Tata Technologies, GMR Airports and Biocon also see rising stakes

Tata Technologies recorded an 18% rise in its share price over the period, moving from around ₹676 to ₹800. FII ownership increased steadily from 5.25% to 6.30%.

GMR Airports gained approximately 13%, with its shares rising from ₹87 to ₹98. Foreign institutional ownership increased from 17.08% in September 2025 to 21.74% in June 2026.

Biocon rounded out the list, gaining around 11% during the year. FII holding in the pharmaceutical company rose from 6.61% to 8.14% across the four quarters.

Stocks with consistent FII accumulation

Company	1-year gain	FII holding: Sep 2025	FII holding: Jun 2026
Hitachi Energy India	67%	9.67%	12.44%
Bank of Maharashtra	65%	2.35%	5.82%
GE Vernova T&D India	59%	16.14%	22.89%
SAIL	54%	3.76%	7.09%
L&T Finance	38%	6.40%	7.71%
Indian Bank	33%	4.68%	6.16%
Tata Technologies	18%	5.25%	6.30%
GMR Airports	13%	17.08%	21.74%
Biocon	11%	6.61%	8.14%

Source: ACE Equity data as reported by ETMarkets.

What the trend means for investors

The steady increase in FII holdings provides an important market signal, but it should not be treated as a standalone reason to buy a stock. Institutional investors can have different investment horizons, portfolio objectives and risk strategies.

The data does, however, show that foreign investors have continued to identify opportunities within selected midcap companies despite broader caution toward Indian equities. Earlier market data has also pointed to selective FII accumulation in midcap stocks even during periods of significant foreign selling across the wider market.

For retail investors, the more useful takeaway may be to treat sustained FII buying as a starting point for further research. Company earnings, valuations, debt levels, sector conditions and future growth prospects remain important factors before making any investment decision.

With several of these stocks already delivering strong gains over the past year, investors may also need to consider whether current valuations adequately reflect the companies' future growth expectations.

This article is for informational purposes only and does not constitute investment advice.