8 Indian Stocks that Foreign Investors Love

Bangalore: Companies with higher Foreign Institutional Investments (FIIs) have a reason to rejoice this year as their stock prices soar, reports Rajesh Mascarenhas of the ET Bureau.

Top companies which are reaping the rewards of higher investments from FIIs than that of promoter groups include – HDFC, Infosys, ITC, L&T, ICICI, SBI, RIL and United Spirits. Apart from excellent corporate governance being a magnet for FIIs, Press Trust of India lists out the possible reasons behind this trend. Sudip Bandyopadhyay, CEO and MD of Destimoney Securities, says, “FIIs are generally nervous due to the global situation, so they are considering emerging markets such as India as safe option.” Kishor Ostwal, CMD of CNI Research, quotes, “Market is at a low level and FIIs are not seeing much downside. So, they are investing in Indian equities.” About Rs.2,041.3 crore investments were made by FIIs in equities during September 2 to 15, 2011. FIIs, however, withdrew Rs.266 crore in 2011.

Here are some of the companies which are witnessing a surge in stock prices majorly because if increased foreign investments –

1) HDFC

HDFC (Housing Development Finance Corporation Limited) is a commercial real estate firm of India, head-quartered in Mumbai. Renu Sud Karnad is the CEO of HDFC. It has 1,505 employees in the year 2011.

FIIs bought 1,474,171,910 HDFC shares in December, 2011, 1,464,363,840 shares in December, 2010 and 285,855,267 in 2009. FII investment pattern shows an increasing order of investments.

HDFC declared a net profit Rs.981.25 crore for the quarter ended December, 2011. It registered a net profit of Rs.890.88 crore for October-December quarter of 2010-11. It total income increased from Rs.3,321.04 crore in 2010 to Rs.4,472.51 crore during the quarter, 2011.