Foreign Institutional Investors have intensified their selling pressure across Indian markets, with financials and tech names dominating the FII selling list in recent sessions. According to Groww, companies like Coforge, ICICI Bank, Aavas Financiers, Manappuram Finance and Max Healthcare have seen sizable cuts in their FII holdings. This latest wave of selling comes after FII outflows in March 2026 alone hit ₹1.18 lakh crore - a monthly exit larger than the entire year of FII inflows recorded in 2013. The broader market FII ownership has fallen to 16.9% through this period, with India's premium to the MSCI Emerging Markets index compressing from over 100% to approximately 65%, making markets like South Korea and Brazil relatively more attractive.
Despite the broader market selloff, Foreign Institutional Investors have shown remarkable concentration in AI stocks during Q4 2026, with ten companies holding FII stakes between 48% and 64% of total equity. According to Economic Times data sourced from primeinfobase.com as of March 31, 2026, this represents extraordinary concentration at a time when FII ownership across NSE-listed companies has collapsed to 16.9% - the lowest level in nearly two decades. The common thread across these positions is low promoter overhang, with most companies having promoters hold only 5-20%, leaving large, freely tradeable floats that global funds can enter and exit efficiently.
Le Travenues Technology (ixigo) topped the list at 64.19% FII holding on a market cap of ₹7,305 crore, followed by 360 One WAM at 63.33% and Redington at 61.49%. In the AI-specific segment, One 97 Communications (Paytm) holds 49.40% FII stake on India's largest market cap in this cohort at ₹73,436 crore. Urban Company sits at 55.77% FII holding, while LTM maintained steady growth with holdings increasing from 6.51% in December 2025 to 6.63% in March 2026. The concentration gap of more than 30 percentage points between these positions and the market average of 16.9% represents deliberate, high-conviction positions held through one of India's worst FII selloffs.
One 97 Communications (Paytm) reported a landmark FY26 turnaround with consolidated net profit of ₹552 crore versus a net loss of ₹663 crore in FY25, as revenue rose 22% to ₹8,437 crore. Goldman Sachs reiterated its Buy rating with a target price of ₹1,400, citing Paytm's UPI market share rising to 6.5% in March 2026, up from 5.4% a year ago. The company's AI capabilities have been strengthened through partnerships with industry specialists, with management reporting increased client engagements in data and AI-led initiatives. FIIs appear to be looking past the stock's 50% decline from its 52-week high and focusing on the earnings trajectory instead.
According to Economic Times, India's premium to the MSCI Emerging Markets index compressed from over 100% to approximately 65%, making markets like South Korea and Brazil relatively more attractive. The broader market FII ownership fell to 16.9% through this period, with DIIs absorbing the FII selling in March 2026 almost entirely, purchasing ₹1.16 lakh crore against FII outflows. For the first time, domestic institutional ownership in Indian equities now exceeds FII ownership, with the next trigger to watch being Q1 FY27 shareholding data due in July 2026. The current FII selling wave, with financials and tech names bearing the brunt of the exodus, suggests continued pressure on these sectors while AI-focused companies maintain their high-conviction investor base.
