Foreign institutional investors (FIIs) have consistently reduced their holdings in 146 Indian companies over the last four quarters, according to shareholding data. This trend spans various sectors and market caps, affecting both large companies like ITC and smaller firms such as Sula Vineyards and Brainbees Solutions (FirstCry).
Cohance Lifesciences has seen its FII holding drop from 11.05% in March 2025 to 5.59% by March 2026, losing 70.55% of its value in the past year. Reliance Infrastructure is down 68.83%, while Go Fashion has shed 60.3%. ITC’s FII holding decreased from 39.87% to 34.83%, with the stock down roughly 30%.
The selling has been particularly pronounced in banks, financials, and IT stocks, driven by concerns over the Gulf crisis and AI’s impact on Indian IT services. Despite this, some stocks like Shriram Finance and Siemens India have performed well, indicating domestic investors may be absorbing FII supply.
The Nifty 50 index remains flat, while midcap and smallcap indices have gained 9% and 4%, respectively. Analysts express skepticism about future growth, citing high valuations and slow income growth.
