In May 2025, Foreign Institutional Investors(FIIs) returned to investing in the Indian stock market by injecting ₹18,082 crore, a significant increase from April’s investment, which accounted for only ₹4,243 crore. Apart from boosting benchmark indexes, this rise in FII interest has also attracted domestic investors’ attention. In this blog, we will explore why FII investment matters and the top 10 stocks that saw FII buying in May 2025.
Why FIIs Matter When Investing in Stocks?
Foreign institutional investors have a significant influence on the Indian stock market because they provide capital and employ smart investment strategies. FIIs have the power to affect stock prices, increase market liquidity, and drive investor sentiment of a particular stock. As a result, FII data is often covered in stock market news.
When FIIs invest significantly in a market or specific stocks, it often signals strong confidence in the underlying fundamentals, such as a company’s robust business model, positive growth prospects, capable management, and strong financial health.
On the other hand, significant FII outflows can indicate underlying concerns, potentially leading to increased market volatility and downward pressure on share prices. Therefore, tracking FII activity helps domestic investors gauge global market trends and identify fundamentally strong stocks with growth potential.
10 Stocks with the Strongest FII Buying Last Month
Based on recent FII DII data filings, the following stocks saw increases in their FII holdings last month.
1. AWL Agri-Business
AWL Agri-Business, a leading player in the agri-processing and edible oil sector, saw a remarkable 3.15% increase in FII holding last month, taking total FII ownership to 4.31% by month-end. The company’s share price closed at ₹265.25 in May 2025, with a price-to-earnings (P/E) ratio of 28.14 and a market capitalisation of ₹34,474 crore.
The primary driver of FII buying has been AWL’s robust quarterly performance, marked by a 21.39% increase in net profit, a strong return on capital employed (ROCE) at 20.84%, and a 37.86% jump in sales. FIIs are attracted by the company’s leadership in agri-processing and its ability to capitalize on India’s growing food demand and supply chain reforms.
2. Aadhar Housing Finance
Aadhar Housing Finance, a major affordable housing financier, attracted a 1.02% rise in FII stake in the last month, taking foreign ownership to 5.32%. The stock ended May at ₹443.80, with a P/E of 21.01 and a market capitalization of ₹19,161 crore. FIIs are bullish on Aadhar’s strong asset quality, expanding distribution, and the government’s continued push for affordable housing.
The company posted a 21.35% jump in quarterly profit and 20.35% higher sales, outpacing sector averages. The stock is seen as a resilient performer with a robust growth outlook, driving a strong return on capital employed (ROCE) at 11.42%.
3. Blue Jet Healthcare
Blue Jet Healthcare, a specialty pharma and intermediates manufacturer, saw FII holdings rise by 1.18% to 2.28% in the last month. The stock traded at ₹922.30 at the end of May, with a relatively high P/E of 52.44, a market capitalization of ₹16,007 crore, and a strong return on capital employed (ROCE) at 40.59%.
The company delivered an 85% YoY jump in its revenue in Q4FY25, driven by new capacity additions and strong demand for pharma intermediates.FIIs are attracted by Blue Jet’s focus on high-growth segments like contrast media, advanced APIs, its robust margin profile, a well-funded Capex plan, and healthy earnings.
4. SBFC Finance
SBFC Finance, a retail-focused non-bank lender, recorded a 1.61% increase in FII holding last month, reaching 6.53%. This is a significant jump compared to previous months, reflecting FIIs’ growing confidence in India’s credit cycle and financial inclusion trends. The stock closed in May at ₹112.85, with a P/E of 35.60 and a market capitalization of ₹12,288 crore.
SBFC saw a 28.56% rise in quarterly profit and a 29.33% sales growth. The company’s improving asset quality and expanding branch network have also boosted FII’s confidence. SBFC’s differentiated lending model and high ROCE of 11.53% make it a compelling play for investors seeking exposure to India’s credit cycle.
5. Valor Estate
Valor Estate, a real estate developer, saw FII holdings jump by 1.12% to 4.68% in the last month. The Valor Estate share price closed May at ₹215.10, with a market capitalization of ₹11,570 crore. FIIs are attracted by the cyclical recovery in Indian real estate, especially in the mid-income and affordable segments, the strong project pipeline, and Valor’s remarkable operational turnaround.
The company posted a remarkable 645% jump in quarterly profit and a 347% surge in sales, reflecting strong project execution and demand in key markets. For the quarter ended March 2025, the company reported consolidated net sales of ₹645.08 crore, up an impressive 347.3% year-on-year, compared to ₹144.22 crore in the same quarter last year.
6. Shakti Pumps
Shakti Pumps, a manufacturer of solar and electric pumps, recorded a 2% rise in FII holding to 5.16% in the last month. The stock was priced at ₹889.65 at the end of May, with a P/E of 26.19 and a market capitalization of ₹10,698 crore. FIIs are attracted to Shakti Pumps’ focus on exports and technology-driven products.
The company’s strong 22.93% profit growth and 9.2% sales increase, coupled with government incentives for solar irrigation, further enhances its appeal in FIIs, attracting a significant amount of investment from them. With a strong ROCE of 55.31% and leadership in its niche, the stock is seen as a play on India’s rural and green energy push.
7. GMR Urban
GMR Urban, a diversified infrastructure and real estate player, saw FII holdings rise by 1.04% to 4.99% in the last month. The company’s share price closed in May at ₹111.55, with a market capitalization of ₹7,981 crore. FIIs are particularly attracted to GMR Urban’s strategic position in India’s urbanization, infrastructure upgrade cycle, and ability to monetize land and assets in high-growth corridors.
The company reported a 17.92% jump in quarterly profit and 6.31% sales growth. The company reported a 41.85% annual revenue growth, significantly outpacing its three-year CAGR of 16.82%, and delivered a remarkable return on equity (ROE) of 241.52% for the year ending March 31, 2025, far above its five-year average, making it an interesting investment opportunity.
8. Paras Defence
Paras Defence, a fast-growing defense electronics and engineering company, saw a 2.44% increase in FII holding to 7.28% in the last month. The stock ended the May month at ₹1,722.70, with a high P/E of 112.92 and a market capitalization of ₹6,944 crore. Paras Defence’s consistent financial outperformance and its strategic moves in high-growth domains such as hydrogen drones and advanced optics are driving FIIs’ interest in the company.
With a 105.42% jump in quarterly profit and 35.81% sales growth, Paras Defence is benefiting from India’s focus on indigenization and defense modernization. FIIs are betting on their strong order book and niche capabilities. With its expanding technological capabilities and an ROCE of 15.43%, Paras Defence is well-positioned for sustained performance and value creation.
9. Websol Energy
Websol Energy, a prominent manufacturer of high-efficiency mono PERC solar cells and modules, experienced a significant rise in its FII holdings by 1.78% to 4.24% in the last month. The company ended the May month at ₹1,383.55, with a P/E of 38.73 and a market capitalization of ₹5,994 crore. The company posted a 185% surge in quarterly profit and 595% sales growth, reflecting strong demand for solar products amid India’s renewable energy push.
Websol is commissioning new production lines of a 600 MW mono PERC solar cell facility and a 550 MW solar module line, which are expected to be operational by July 2025, significantly boosting its manufacturing capacity and thus attractive FIIs. With a strong ROCE of 59.15%, Websol is well-placed to capitalize on the solar boom in India.
10. The Anup Engineering
Anup Engineering, a precision engineering and fabrication company, saw a 1.08% increase in FII holdings to 4.59% in the last month. The company ended May at a stock price of ₹2,805, with a P/E of 47.98 and a market capitalization of ₹5,606 crore.FIIs are betting on Anup’s leadership in high-spec engineering solutions for refineries, petrochemicals, and renewables.
The company delivered a 30.57% jump in sales. This growth was supported by the successful integration of its Mabel Engineers acquisition, which expanded fabrication capacity and contributed to a larger, more diversified order book. The company’s order book stood at a healthy ₹770 crore as of year-end, providing strong revenue visibility for the coming quarters. With a robust ROCE of 24.23% and a strong order pipeline, Anup Engineering remains a structural player in India’s industrial capex cycle.
Conclusion
The strong FII inflows in the last month, and their targeted buying into specific sectors and companies, showcase a renewed wave of optimism towards the Indian share market.
For investors, tracking FII flows can provide valuable signals about emerging trends and potential outperformers. However, it’s essential to look beyond just FII activity and assess fundamentals, valuations, and long-term prospects before making investment decisions.
