Despite ₹1.80 lakh crore in foreign portfolio investor outflows during FY26, many foreign promoters have increased their stakes in Indian companies. Data shows a significant drop in the number of Nifty-500 firms where foreign promoters reduced their ownership compared to the previous year.
In a notable trend during fiscal year 2026, foreign promoters have displayed increased confidence in Indian equities, standing in contrast to the broader trend of net selling by foreign portfolio investors (FPIs). While FPIs offloaded Indian shares worth ₹1.80 lakh crore throughout the year, internal data from Nifty-500 companies reveals a more nuanced picture of long-term commitment from those who manage the businesses themselves.
Trends in Promoter Ownership
Recent filings show that the number of Nifty-500 companies with foreign promoter involvement that saw a decrease in ownership fell to 27.4% in FY26, down from 36.3% in FY25. This indicates that while the broader market faced pressure from foreign institutional selling, many foreign promoters chose to retain or expand their positions rather than reducing them.
Notable Stake Changes
The increase in foreign promoter holdings was concentrated in several specific firms. AAVAS Financiers saw the most significant rise, with its foreign promoter stake increasing by 22.41 percentage points following a deal involving Aquilo House. Similarly, the infrastructure company Cemindia Project recorded a 20.82 percentage point increase, while Adani Ports saw its foreign promoter stake rise by 4.79 percentage points to reach 28.03%.
Other companies also witnessed varied movements. AWL Agri Business reported an increase of 13 percentage points, and Cohance Life saw an addition of 7.39 percentage points. These movements reflect strategic decisions at the company level, which often differ from the short-term trading strategies typically employed by large institutional investors.
Significant Exits in Key Sectors
Not all foreign promoters maintained their positions. The paints sector experienced major shifts as some global players exited entirely. JSW Dulux saw Imperial Chemical Industries and Akzo Nobel Coatings International finalize their exit from a 74.76% stake by March 2026. Additionally, Berger Paints witnessed a complete departure of its foreign promoter holdings.
In the financial services sector, Aptus Value Housing Finance saw a decline of 28.59 percentage points in foreign promoter ownership as funds like Westbridge Crossover and JIH II liquidated their positions. Other companies, including Whirlpool India and KFin Technologies, also faced double-digit percentage point reductions in foreign promoter stakes.
Investors looking at these trends may want to distinguish between routine institutional rebalancing and strategic moves by long-term foreign promoters. Future updates to watch will include the September and December quarterly filings, which will clarify whether these stake increases represent a sustained long-term commitment to Indian operations or temporary support during periods of market volatility.