Voltas, Indus Towers, Ami Organics among 15 stocks saw FII buying stake for the past 5 quarters
Stocks where FIIs added stake consistently: Such stocks give a positive picture when it comes to the outlook for the stock give continued FII interest.
FIIs or foreign institutional buying triggers a positive sentiment even for retail buyers as it shows their confidence in the stock. The other reasons why FII buying is intergral:
FII buying triggers FOMO
FII buying triggers FOMO or fear of missing out- helping drive prices higher.
Other key impacts of FII buying in stocks
FII buying shares a direct correlation with Sensex and Nifty and helps support key indices.
Trading volume in the stocks get a support where there is continued FII buying
With enhanced FII buying, stocks get liquidity support as all investors are able to make buy and sell bids without too much price swings.
FII buying helps company in capital building
FII buying in a stock adds up capital for the company, assisting the company in its broader goals.
FII buying boosts domestic buying too creating an investment cycle
FII buying also triggers buying by DIIs and which then creates a virtuous cycle of investment.
FII buying of a large-scale creates real big impact
As has been the trend if we talk of FII inflow since April, the sentiment and buying spree has triggered positive gains for the headline indices.
FIIs have a bigger pie in largecaps
Primarily, FIIs hold a larger stake in largecaps and for individual stocks to make a sizable impact- their buying has to be in crores to render some substantial impact.
FII buying comes with restriction
For FIIs, the buying limit is pegged at 24 per cent this includes FII/ NRI/ PIO. This limit if increased also boost fresh buying and hence the sentiment.
Sustained buying makes a substantial impact over one-time
For the real impact to follow positively, FII buying has to sustain in the stock.
Voltas, ZF Commerical, Indus Towers, Ami Organics among 15 stocks in the list
The list of stocks where FIIs have been adding stake for the past 5 quarters are ZF Commercial Vehicles, Uno Minda, Ami Organics, Voltas, Gillette, KPR Mill, Indus Towers, Shriram Pistons, GE Vernova T&D, Azad Engineering, Anup Engineering, Aurionpro Solutions, Endurance Technologies, Coromandel International and Transformer and Rectifiers.