FIIs and DIIs are betting on these three stocks. Here's why

Equitymaster
4 min read17 Jul 2026, 08:00 AM IST
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Institutional buying often reflects research-backed conviction in a company's earnings, growth prospects or valuation. But it is not a buy signal on its own. (Image: Pexels)
Summary
Institutional investors raised their holdings in these three stocks in the June quarter. Here's what the companies do and why they could be worth watching.

Institutional investors can move markets. So when both FIIs (foreign institutional investors) and DIIs (domestic institutional investors) raise their stakes in a stock, it is worth paying attention.

That is because institutional buying often reflects research-backed conviction in a company's earnings, growth prospects or valuation. But it is not a buy signal on its own. Portfolio rebalancing, index changes and short-term strategies can also drive such purchases.

With that caveat, here are three stocks where FIIs and DIIs increased their holdings in the June 2026 quarter.

JSW Infrastructure

JSW Infrastructure, a port operator and part of the JSW Group, tops the list.

The company develops and operates ports, terminals and integrated logistics assets, handling commodities including coal, iron ore, steel, containers, crude oil, LNG and fertilizers.

The sharp increase in institutional ownership in the June 2026 quarter stands out. FII holdings rose from 6.92% to 10.71%—a 3.79 percentage-point increase, or roughly 55% growth in holdings. DII ownership jumped from 2.43% to 9.19%, a 6.76 percentage-point increase and nearly 278% growth in holdings.

The company has also delivered strong financial growth. Its three-year sales CAGR stands at 18.8%, while net profit has grown at a three-year CAGR of 27.3%.

The next leg of the story is expansion. According to a recent investor presentation, JSW Infrastructure's 2030 Road Map for Growth and Value Creation targets a 2.4-fold increase in overall port capacity. The company plans to pursue this through privatisation bids and inorganic growth opportunities in ports and related infrastructure, leveraging its balance sheet.

It also plans to participate in bids for Gati Shakti Multi-Modal Cargo Terminal (GCT) assets, an asset-light model in which land is provided by the Railways.

By FY30, management is targeting revenue of 80 billion and capex of 90 billion.

To know more, check the JSW Infrastructure fact sheet and latest quarterly results.

Data Patterns

Data Patterns, an Indian IT solutions provider focused on defence and aerospace electronics, is next on the list.

The company designs and manufactures radar, electronic warfare, avionics, communication and space systems.

FII holdings in the stock have been cyclical, but the June 2026 quarter saw a notable accumulation. DII ownership, meanwhile, has followed a more consistent upward trend.

The company has reported a three-year sales CAGR of 26.8% and a three-year net profit CAGR of 29.8%.

Its order pipeline is also gaining momentum. Data Patterns recorded order inflows of approximately 11.21 billion in FY26, up 216% year-on-year, reflecting demand across multiple defence and aerospace programmes.

The inflows were diversified across radar systems, avionics, electronic warfare, services and strategic electronics applications. The order book stood at approximately 20.62 billion as of mid-May.

The company continues to target revenue growth of around 20–25% over the short term while maintaining EBITDA margins of 38–40% and preserving its net cash position.

To know more, check the Data Patterns India fact sheet and latest quarterly results.

Premier Energies

Premier Energies is the third stock on the list.

The company manufactures solar photovoltaic products, primarily solar cells and modules.

FII holdings rose from 4.38% in September 2025 to 5.72% in June 2026, with the sharpest increase coming in the June quarter. DII ownership remained consistently high, rising from 12.96% to 13.69% over the same period despite a slight dip in March 2026.

The company's financial growth has been equally striking. Sales have grown at a three-year CAGR of 76%, while net profit has recorded a three-year CAGR of 370%.

Premier Energies recently completed construction of its 5.6-gigawatt module plant in Telangana, which is expected to achieve full ramp-up in the next two months. Its proposed acquisition of a 51% stake in Transcon has also been completed.

The company is now embarking on a major expansion, with total capacity set to increase nearly sevenfold to 16.75 GVA by July 2026, with a focus on the more lucrative HV and EHV segments.

Overall, Premier Energies is looking to capitalise on the solar opportunity with expanded module capacity of 11.1 gigawatts and cell capacity of 10.6 gigawatts shortly. These capacities make it one of India's largest and most integrated cell and module manufacturers.

FY27 is expected to be a year of heavy capex, with 51 billion to be deployed across cells, ingot wafers, batteries and inverters.

To know more, check the Premier Energies fact sheet and latest quarterly results.

Also Read | Three pharma stocks where FIIs raised stake in the March quarter

Should consider stocks bought by FIIs and DIIs?

Stocks being accumulated by both FIIs and DIIs can deserve a place on an investor's watchlist. The buying may indicate institutional conviction.

But it should not be mistaken for a guarantee of future returns.

Before adding a stock to your portfolio, assess its fundamentals, earnings outlook, business quality, corporate governance and valuation. Institutional buying is a positive signal—but it is only one part of the investment case.

Disclaimer:This article is for information purposes only. It is not a stock recommendation and should not be treated as such. Learn more about our recommendation serviceshere.

About the Author

Equitymaster is India's leading independent equity research platform, providing in-depth research and analysis on BSE- and NSE-listed companies since 1996. As a SEBI-registered Research Analyst [Registration No. INH000021128], Equitymaster covers the full spectrum of Indian equities — bluechip stocks, midcap stocks, smallcap stocks, and microcap stocks.<br><br> At the heart of Equitymaster's research philosophy are the principles of value investing — particularly the margin of safety and the primacy of investment over speculation. All research is produced by an independent team of SEBI-registered research analysts with vast experience in Indian financial markets, using detailed systems and processes developed entirely in-house.<br><br> With over 17 lakh readers across 72 countries, Equitymaster is one of India's leading equity research publications. Since 1996, the goal has remained the same — to deliver honest, unbiased, and credible equity research that helps Indian investors make better, more informed decisions.

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