Whalesbook
FII Sell-off Continues
Foreign Institutional Investors (FIIs) continued to offload Indian equities throughout late 2025 and early 2026. The cash segment saw net sales of Rs 175 billion in November 2025. This selling pressure intensified in December 2025, reaching Rs 343.49 billion. The trend persisted into the new year, with net sales hitting Rs 217.06 billion in the first 14 days of January 2026.
Select Stocks Attract Buying Interest
Despite the overall divestment, a handful of companies have managed to attract buying interest from FIIs. Data for the quarter ending December 2025 reveals increased holdings in specific stocks, signaling a divergence from the prevailing market sentiment.
GRM Overseas Holdings Rise
GRM Overseas, a company focused on milling, processing, and marketing basmati rice and other food products, saw a significant increase in its FII stake. Holdings grew from 1.89% in September 2025 to 3.36% by December 2025, an increase of 1.47%. Financially, the company reported robust performance in Q2 FY26, with total revenue up 16.2% year-on-year to Rs 3,721 million and net profits surging 60.5% to Rs 148 million. EBITDA margins also expanded. GRM Overseas is also expanding its international footprint with new distribution centers in the UAE and Saudi Arabia.
Torrent Pharma Sees Modest FII Stake Growth
Torrent Pharmaceuticals, a major player in branded generics and generic medicines, also witnessed a marginal uptick in FII ownership. Their stake increased from 15.92% in September 2025 to 16.13% in December 2025. The company posted strong Q2 FY26 results, with net sales growing to Rs 33,020 million and net profits jumping to Rs 5,910 million. Key markets like India and Brazil showed healthy double-digit growth. Torrent Pharma anticipates continued market share gains in India and is nearing the completion of an acquisition.
Kovai Medical Expands FII Holdings
Kovai Medical Center and Hospital, a multi-specialty hospital in Tamil Nadu, saw its FII stake rise from 1.25% to 1.31% in the same period. The hospital reported an increase in net sales to Rs 3,920 million and net profits to Rs 589 million in Q2 FY26. Future expansion plans include adding 100 beds to its main campus and establishing a new hospital in Chennai.
Cautionary Note on FII Flows
While increased FII holdings in these companies may signal positive sentiment, investors are cautioned against relying solely on this data. FII flows can be volatile and influenced by global macroeconomic factors, including interest rate changes, currency fluctuations, and geopolitical events. A thorough evaluation of a company's fundamentals, corporate governance, and valuation remains paramount before making investment decisions.