The Indian equities market is heavily impacted by Foreign Institutional Investors (FIIs) and Foreign Portfolio Investors (FPIs). They are currently investing billions, which affects the mood of the market and stock prices. Stocks frequently respond favorably to FII investments, driving up prices. As FPIs look for possibilities in India’s expanding economy, this trend keeps going.

Additionally, the market is becoming more stable and liquid as a result of their investments. These investors evaluate market conditions and adjust their tactics based on regional economic indicators as well as worldwide trends. As a result, their activities cause a rippling effect that impacts market dynamics and investor confidence.

All things considered, the existence of FIIs and FPIs is essential to maintaining the expansion of the Indian equity market. Going forward we will be discussing about 5 such companies where FIIs have been consistently increasing their stake.

Best stocks in which FIIs are consistently increasing stake

KFin Technologies

KFin Technologies, established in 2017, operates in the financial technology sector and employs around 6000+ people. The company specializes in providing technology-driven services for asset managers and corporate issuers, including mutual fund registry, transfer agency services, and investor solutions. KFin Technologies leverages cutting-edge technology to enhance efficiency and ensure compliance, offering a range of services tailored to the needs of the financial sector. 

KFin Technologies is currently advancing its digital platform, excelling in transaction management, big data solutions, and wealth management services. Recently, KFin has been actively strengthening its digital offerings with key acquisitions. For instance, it acquired WebileApps in April 2023, enhancing its digital transformation and broadening its service portfolio.

The company is also focusing on expanding its influence in the asset management and wealth management sectors through innovative platforms like mPower Wealth, launched in September 2024. This platform is set to transform wealth management by providing seamless, omnichannel solutions.

In 2023, KFin Technologies generated a revenue of ₹720 crore with a net profit of ₹196 crore. The revenue rose to ₹838 crore in 2024, with a net profit of ₹246 crore. Foreign Institutional Investors (FIIs) have increased their stake significantly, from 9.22% in September 2023 to 22.80% by June 2024, indicating strong investor confidence.

Looking ahead, KFin Technologies is poised for continued growth, leveraging its innovative solutions to expand market share. The company focuses on enhancing its service offerings and exploring new market opportunities, ensuring robust growth prospects.

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Computer Age Management Services(CAMS)

Computer Age Management Services(CAMS) founded in 1988, is serving the mutual fund industry. The company is providing technology-driven solutions for financial institutions. CAMS is handling over 69% of mutual fund transactions in India. Moreover, it’s offering services to insurance companies and alternative investment funds.

CAMS is using its in-house platforms to keep a technological advantage over rivals in the mutual fund sector. It has the biggest transfer agency platform in India, which helps the industry scale while handling operational complexity. Hundreds of apps and APIs are developed and hosted by CAMS on a fully virtualized Hyper-Converged Infrastructure (HCI), which powers its data centers.

To further improve corporate productivity and efficiency, CAMS is implementing cutting-edge digital technologies like robotic process automation (RPA), machine learning (ML), and artificial intelligence (AI). The insights powered by its Business Intelligence (BI) solutions are essential for the mutual fund sector.

In 2023, CAMS reported revenue of ₹929 crore and net profit of ₹275 crore. By 2024, revenue grew to ₹1,054 crore, while net profit rose to ₹337 crore. FIIs have shown increasing interest in CAMS. They have increased their stake starting from 38.61% in September 2023 and reaching 56.51% by June 2024.

Looking ahead, CAMS is aiming to expand its digital offerings. The company is also exploring new sectors for growth. Additionally, it’s focusing on enhancing its technology infrastructure to meet evolving market needs.

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Timken India

Timken India is the subsidiary of Timken Company’s which was founded in 1987 and focuses on producing mechanical power transmission devices and high-performance bearings. The company supports industries like automotive, aerospace, and industrial machinery and employs approximately 19,000 people. Its state-of-the-art production plants in Bharuch and Jamshedpur help in meeting the rising domestic and global demand for bearings.

To deliver performance-optimized solutions, the company works directly with major OEMs and end customers through a collaborative technical selling approach. One of Timken’s four global innovation hubs, the Bangalore Technology Centre improves customer access to state-of-the-art engineering know-how and technical innovations.

Established in 2008, Timken India’s Chennai facility is also focused on supplying sophisticated goods and large bore bearings to worldwide markets. Timken India Limited through continuous innovation and robust product technology is committed to improving customer performance and productivity while reducing operating costs.

In 2023, Timken India generated a revenue of ₹2,807 crore and a net profit of ₹391 crore. By 2024, revenue increased slightly to ₹2,910 crore, while net profit remained steady at ₹392 crore. FIIs gradually increased their stake from 6.71% in September 2023 to 12.53% by June 2024, indicating steady investor interest in the company’s performance.

Looking ahead, Timken India focuses on expanding its product portfolio and enhancing manufacturing capabilities. The company aims to strengthen its market presence and explore new opportunities for sustainable growth.

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Aurionpro Solutions

Aurionpro Solutions, founded in 1997, employs around 2000+ people and operates in the IT solutions and services sector. The company provides a wide range of technology solutions, including digital innovation, cybersecurity, and transaction banking solutions. Aurionpro is committed to helping businesses achieve digital transformation and enhance operational efficiency.

Aurinopro offers cutting-edge solutions designed to transform and digitize the banking industry across both retail and wholesale sectors. Retail Banking, Aurinopro focuses on branch transformation by automating routine transactions and shifting front-line activities across multiple touchpoints, including digital channels.

This enhances operational efficiency while delivering an elevated customer experience (CX). In Wholesale Banking, Aurinopro provides robust Transaction Banking Solutions, enabling the digitization of corporate banking processes through advanced front-end engineering. This delivers a seamless and enriched experience for end-users.

Additionally, Aurinopro’s Credit Risk Management Solutions offer a comprehensive suite that simplifies credit loan origination, assessment, and management. It is driven by industry best practices, ensuring streamlined and efficient risk management for financial institutions.

In 2023, Aurionpro Solutions reported revenue of ₹659 crore with a net profit of ₹102 crore. By 2024, revenue grows to ₹887 crore, while net profit rises to ₹143 crore. FIIs are increasingly confident, raising their stakes from 4.44% in September 2023 to 12.85% by June 2024, reflecting positive market sentiment.

Looking forward, Aurionpro Solutions is focused on expanding its global footprint and enhancing its technology offerings. The company aims to capitalize on emerging market opportunities and drive sustained growth.

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Also read…

Suzlon Energy

Suzlon Energy, founded in 1995 and employs approximately 6500 people and operates in the renewable energy sector. The company specializes in wind energy projects, providing end-to-end solutions for the development, construction, and maintenance of wind farms. Suzlon Energy is dedicated to promoting clean energy and sustainability.

Leading the way in renewable energy solutions worldwide, the Suzlon Group has deployed wind energy capacity of about 20.8 GW across 17 countries. The company has its headquarters in Pune, India. Besides this, the company maintains internal R&D centers in Germany, the Netherlands, Denmark, and India.

With more than 6,400 workers and more than 29 years of experience, Suzlon is the largest wind energy service provider in India, overseeing 14.8 GW of wind energy assets. The 2 MW and 3 MW series wind turbines from Suzlon lead its product lineup, offering complete solutions for both local and foreign markets.

Notably, Suzlon has recently partnered with NTPC Green Energy Limited, securing the nation’s largest wind energy order, further solidifying its position in the renewable energy sector. The group also boasts an installed capacity of around 6 GW outside India, highlighting its global presence and commitment to sustainability.

In 2023, Suzlon Energy generated revenue of ₹5,971 crore with a net profit of ₹2,887 crore (Including exceptional items). By 2024, the company saw its revenue increase to ₹6,529 crore, and net profit dropped to ₹659 crore. Although the operating profit went up from 833 crore to 1,037 crore. FIIs have rapidly increased their stakes, from 10.88% in September 2023 to 21.53% by June 2024, indicating growing investor interest in the green energy sector.

Looking ahead, Suzlon Energy is focused on expanding its solar energy portfolio and exploring new opportunities in renewable energy. The company aims to drive growth through innovation and sustainability initiatives.

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List of other companies in which FIIs have increased stake

Conclusion

To conclude, Foreign Institutional Investors (FIIs) are playing a crucial role in shaping the Indian equities market. They are consistently increasing their stakes in promising companies across various sectors. Furthermore, these investments are not only boosting stock prices but also enhancing market stability and liquidity.

Meanwhile, companies like KFin Technologies, CAMS, Timken India, Aurionpro Solutions, and Suzlon Energy are benefiting from this trend. As a result, they are experiencing growth in revenue and profit. Additionally, these companies are focusing on innovation and expansion to maintain their growth trajectories. Consequently, the future outlook for these firms appears positive, with potential for further development and market penetration.

Question for the readers: How might the increasing FII stakes in these companies impact their long-term strategies and decision-making processes? What potential risks or challenges could arise from the growing dependence on foreign investments in the Indian equities market? Comment below.

Written By Dipangshu Kundu

By utilizing the stock screener, stock heatmap, portfolio backtesting, and stock compare tool on the Trade Brains portal, investors gain access to comprehensive tools that enable them to identify the best stocks, also get updated with stock market news, and make well-informed investments.

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