Foreign Investors Sell Indian Equities Heavily But Increase Stakes in Cartrade, Ixigo Tech Stocks

Foreign Institutional Investors (FIIs) have significantly reduced their exposure to Indian equities, offloading stocks worth approximately ₹1,46,002 crore as of November 14, 2025. This selling pressure has been particularly pronounced in the Information Technology sector.

However, a contrasting trend is observed with select small-cap, technology-driven companies where FIIs are not only maintaining substantial stakes but are actively increasing them. This article focuses on two such companies: Cartrade Tech Limited and Le Travenues Technology Limited (Ixigo).

Cartrade Tech Limited (CARTRADE): This company operates an online platform for trading new and used automobiles. In the July-September quarter (Q2 FY26), FIIs raised their stake by 1.21 percentage points, taking their total holding to 68.51%. The company reported strong performance across its business segments, including Consumer Group (sales +37%, PAT +87%), Remarketing (sales +23%, PAT +30%), and OLX (sales +17%, PAT +213%). Overall, net profit doubled year-on-year in Q2 FY26. The stock trades at a premium valuation with a PE ratio of 78.5x, compared to the industry median of 45x.

Le Travenues Technology Limited (IXIGO): The parent company of Ixigo is a technology-first travel business. FIIs increased their stake by 3.16 percentage points in Q2 FY26, reaching a total holding of 63.06%. Despite a net loss of ₹3.5 crore in the quarter, the company's sales grew by 36.94% year-on-year, driven by diversified offerings and a strong repeat transaction rate. The company recently raised ₹1,296 crore through a preferential issue, intended for further AI integration. Ixigo's stock commands an exceptionally high PE ratio of 251.5x, far above the industry median of 40x.

Impact

This news highlights a divergence in FII investment strategy. While broadly reducing exposure, their continued investment in specific, high-growth technology companies signals a focus on potential market leaders with strong business models and future prospects. This could lead to increased investor interest and potential price appreciation in Cartrade Tech and Ixigo. The overall FII selling trend, however, continues to exert downward pressure on the broader Indian market sentiment. Rating: 7/10

Definitions of Difficult Terms:

• FIIs (Foreign Institutional Investors): Large investment funds based outside India that invest in Indian financial markets.
• MAU (Monthly Active Users): The number of unique users who engage with a particular application or website in a given month.
• PAT (Profit After Tax): The net profit a company earns after deducting all expenses, including taxes.
• PE Ratio (Price-to-Earnings Ratio): A valuation metric that compares a company's stock price to its earnings per share. A high PE ratio often suggests that investors expect higher earnings growth in the future, or that the stock is overvalued.
• Preferential Issue: A method of issuing shares by a company to a select group of investors at a pre-determined price, usually at a premium, without making a public offer.