FII Selloff Hits ₹5.5 Lakh Crore, But These 84 Stocks Delivered Multibagger Returns

Despite selling more than ₹5.5 lakh crore worth of Indian equities since September 2024, Foreign Institutional Investors (FIIs) have quietly increased their holdings in dozens of high-performing stocks across sectors.

A deeper analysis of shareholding data reveals that FIIs have raised their stakes in 84 multibagger stocks over the past two years, suggesting that global investors are not exiting India completely but are selectively rotating capital into high-growth opportunities.

While large-cap banking and financial stocks have witnessed significant selling pressure, foreign investors continue to back companies operating in sectors such as power infrastructure, defence, engineering, manufacturing, renewable energy, and industrial automation.

84 Multibagger Stocks Witness Rising FII Ownership

The trend highlights a significant divergence between headline FII outflows and actual investment activity within select sectors.

Several companies that delivered extraordinary returns over the last two years have simultaneously witnessed a sharp increase in foreign shareholding.

Top Multibagger Stocks With Rising FII Holdings

Company	2-Year Return	FII Holding Trend
Midwest Energy	19,859%	Increased from 0% to 12%+
Sumeet Industries	6,376%	Increased
CIAN Agro	3,000%+	Increased
Colab Platforms	2,200%+	Increased
GE Vernova T&D India	216%	6.82% to 20.39%
Hitachi Energy India	217%	5.10% to 11.68%
TD Power Systems	220%	16.24% to 26.69%
MTAR Technologies	254%	7.81% to 17.31%

The data suggests that FIIs are increasingly positioning themselves in companies benefiting from India's long-term infrastructure and industrial growth cycle.

GE Vernova T&D India Emerges as a Major FII Favourite

Among the most notable names, GE Vernova T&D India witnessed one of the sharpest increases in foreign ownership.

FII shareholding rose from 6.82% in September 2024 to 20.39% by March 2026, representing an increase of more than 13 percentage points.

The stock delivered a return of over 216% during the same period as investors continued to bet on India's transmission infrastructure expansion and power grid modernization initiatives.

Hitachi Energy India Continues to Attract Global Investors

Another power sector beneficiary, Hitachi Energy India, saw FII ownership increase from 5.10% to 11.68%.

The stock generated returns of approximately 217% over two years as demand for power transmission equipment, renewable energy integration, and grid infrastructure remained strong.

The company remains a key beneficiary of India's growing investments in electricity transmission and clean energy projects.

TD Power Systems Benefits From Industrial Capex Revival

TD Power Systems also emerged as a preferred FII bet.

Foreign ownership increased from 16.24% to 26.69%, while the stock delivered returns exceeding 220%.

The company continues to benefit from rising demand for industrial motors, generators, power equipment, and export opportunities across global markets.

MTAR Technologies Gains From Defence and Aerospace Themes

MTAR Technologies witnessed FII shareholding rise from 7.81% to 17.31%.

The stock generated returns of around 254% over the last two years, supported by strong opportunities in defence manufacturing, aerospace, nuclear energy, and precision engineering.

Growing government support for indigenous manufacturing continues to act as a major growth catalyst.

Defence Stocks Continue to Attract Foreign Capital

The defence sector remains another area where FIIs are steadily increasing exposure.

Paras Defence & Space Technologies saw foreign ownership increase from 3.46% to 5.06%, while delivering returns of over 120%.

Similarly, Apollo Micro Systems recorded one of the strongest increases in institutional participation as investors positioned themselves ahead of India's rising defence spending and export opportunities.

Sterlite Technologies, Aeroflex and Sky Gold Join the List

Several emerging mid-cap and small-cap companies also witnessed rising foreign ownership.

Sterlite Technologies recorded a significant increase in FII holdings alongside a return of over 339%.

Aeroflex Industries saw foreign ownership rise from 0.13% to 1.49%, while Sky Gold attracted increased institutional participation amid strong business growth and improving financial performance.

These stocks highlight FIIs' growing appetite for niche manufacturing and specialty industrial businesses.

Why FIIs Are Still Bullish on India

Market experts believe the ongoing FII selling should be viewed as a portfolio rotation rather than a complete withdrawal from Indian equities.

Foreign investors continue to find opportunities in sectors linked to:

• Power Infrastructure
• Defence Manufacturing
• Data Centres
• Renewable Energy
• Industrial Engineering
• Consumer Discretionary
• Electronics Manufacturing
• AI Infrastructure

India's long-term growth outlook, infrastructure spending pipeline, manufacturing push, and expanding domestic consumption continue to support the investment case.

What Should Investors Watch?

Analysts suggest investors focus on businesses with strong earnings visibility, sector tailwinds, and improving institutional participation.

The current market environment continues to favour companies benefiting from:

• Infrastructure expansion
• Power sector investments
• Defence indigenisation
• Manufacturing growth
• Data centre development
• Energy transition themes

While headline FII selling remains a concern, the accumulation of positions across 84 multibagger stocks indicates that global investors continue to identify long-term opportunities within the Indian market.

Key Takeaways

• FIIs have sold over ₹5.5 lakh crore worth of Indian equities since September 2024.
• Despite the selloff, 84 multibagger stocks have witnessed rising foreign ownership.
• Power, defence, engineering and manufacturing sectors remain major beneficiaries.
• GE Vernova, Hitachi Energy, TD Power Systems and MTAR Technologies are among the biggest FII favourites.
• Experts view the trend as a sector rotation rather than a complete exit from India.

Why are FIIs selling Indian stocks?

FIIs have been reducing exposure to certain large-cap sectors due to global economic uncertainties, valuation concerns, and portfolio rebalancing.

Are foreign investors exiting India completely?

No. Data shows FIIs are selectively increasing their holdings in several high-growth mid-cap and small-cap companies despite broader market selling.

Which sectors are witnessing the highest FII interest?

Power infrastructure, defence, industrial manufacturing, engineering, renewable energy, and data centre-related businesses are attracting strong FII interest.

Which stocks have seen the biggest increase in FII holdings?

GE Vernova T&D India, Hitachi Energy India, TD Power Systems, MTAR Technologies, Sterlite Technologies, and Paras Defence are among the key beneficiaries.

What does rising FII ownership indicate?

Increasing FII ownership often reflects institutional confidence in a company's long-term growth prospects, earnings potential, and sector outlook.