Double Booster: 3 Stocks Seeing Rising DII + FII Holdings

When Foreign Institutional Investors (FIIs) and Domestic Institutional Investors (DIIs) start investing in the same stocks, it's time to take notice.

Such large investors don't invest in the same businesses often, but when they do, it means they see greater value, stronger earnings, or a powerful long-term story.

Over the past few quarters, the buying trend has quietly shifted. FIIs, which chased only large-cap defensive stocks, have quietly begun picking good-quality mid-cap stocks that have grown over the last few years.

DIIs, particularly insurance companies and mutual funds, have also increased exposure to companies with tidy governance, steady margins, and sustainable cash flow.

You must understand this "double-booster" effect often comes first in multiple quarter rallies, as investments from foreign and domestic institutions support the stock price.

In this editorial, we focus on three such companies considering the recent uptick in FII and DII investments.

1. Anand Rathi Wealth

Anand Rathi Wealth ltd is one of India's well-known non-bank wealth management firms. It caters to high-net-worth investors.

It's into mutual fund distribution, wealth solutions, financial product distribution, and tech solutions.

The company's net profit excluding exceptional items was Rs 1,000 million (m) in H1FY26, a jump of 31% YoY. The increase was because of healthy growth in assets under management (AUM) and stable inflows.

The AUM touched nearly Rs 750,840 m, indicating investor confidence in equity-linked wealth products. The operating margins were steady at 46%.

FIIs and DIIs increased their stake during the June and September 2025 quarters. A rare spectacle of shared belief in a mid-cap financial company.

FIIs' stake grew from 4.9% to 5.56% and DIIs' stake rose to 8.4 to 8.73% in the same period. Anand Rathi Wealth could stand to gain from long-term fundamentals because of rising prosperity and the financialisation of savings in India.

It plans to increase its managed financial assets, penetration in India. It will also focus on increasing the share of equity in investor portfolios.

2. AWL Agri Business

AWL Agri Business, previously known as Adani Wilmar, was created when Adani group left the joint venture in FY24. It deals with the management, advertising, and distribution of fast-moving consumer goods, edible oil, and food.

The company had a net profit of Rs 2,380 m, falling 25% YoY compared to Rs 3,130 m in the June 2024 quarter, excluding exceptional items. The operating margin was 2%.

The numbers were supported a bit due to reduced raw material prices and loan payoffs that helped it reduce its net debt-to-equity ratio to 0.21.

FIIs and DIIs have intensified investments in the past few quarters. DIIs' stake jumped to 8.8%, while FIIs' stake rose to 14.6% in September.

The government's drive for edible oil self-reliance and recovery in rural consumption has helped the company grow. Also, institutional investors consider AWL Agri as a long-term story based on India's food security and rural consumption growth story.

The company will focus on expanding the food and FMCG segment contribution to 25% of sales revenue by FY27. It also plans to increase its reach to 50,000 villages this year and increase the number of retail outlets to 1 m in the next three years.

3. Avenue Supermarts

Avenue Supermarts ltd, which owns the retail chain brand DMart, is one of the biggest and most valuable supermarket operators in India.

The company offers a wide range of food, FMCG, general merchandise, and apparel products. It follows the low-cost, low-price everyday strategy in its chain outlets.

The company had a net profit of Rs 6,850 m, a 4% growth YoY. The operating margin remained stable at 7% in H1FY26.

The progress was driven by healthy footfalls and new stores. Improved inventory and higher private-label sales added to the growth.

Though profit margins were stressed due to price rises in perishables, cost control procedures helped in maintaining cost-effectiveness.

FIIs and DIIs both increased their holdings in Avenue Supermarts to 8.73% and 9.02% respectively.

Going forward, DMart will focus on opening new stores at least 60-70 a year while testing other avenues with its online channel, DMart Ready.

Smart Money Moves in Sync

When both FIIs and DIIs increase interest in the same companies, it usually hints at institutional alignment on the growth story in India.

With India's GDP growth forecast to remain above 6.5% through FY26 and consistent retail participation, the institutional inflow story may remain in focus for some time.

The solution is to look for firms where both groups find confidence, robust balance sheets, stable earnings, and a scalable business.

Investors should also evaluate the company's fundamentals, corporate governance, and valuations as key factors when conducting due diligence.

Happy investing.

Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such. Learn more about our recommendation services here...