Foreign investment in the Indian stock market has witnessed an overall dramatic decline, reaching an 11-year low of 17.68%. This represents a substantial decrease of 51 basis points compared to the last quarter. Notably, the gap between domestic and foreign ownership is now the smallest ever recorded. Domestic institutional investors (DIIs) hold just 9.23% less than foreign institutional investors (FIIs). Traditionally, FIIs were the key players among non-promoter investors, heavily impacting where the market moved.

However, there are indeed some companies wherein the FIIs have poured in their money during this critical situation. We have found out three companies which can potentially give high returns in the future. Not only these stocks have corrected considerably but also with such a price attracted attention of FIIs for increasing their stake at a reasonable value.

The three most prominent companies among such a lot are Patel Engineering Ltd, Whirlpool of India Ltd and Cupid Ltd.

I. Patel Engineering Ltd

Patel Engineering Ltd is a heavy civil engineering construction company specializing in dams, bridges, tunnels, roads, and urban infrastructure projects. The FIIs have increased their holding from 3.37% (March 2024) to 8.47% (April 2024). The stock has already corrected by 33% and the golden crossover being established (RSI 14, SMA 14), the stock may move upwards in the near term. The recent financial results are also impressive wherein Patel Engineering Ltd’s net profit for the fourth quarter (ending March 31, 2024) skyrocketed by 83% year-on-year, reaching ₹141 crore. 

II. Whirlpool of India Ltd

Whirlpool of India Ltd is a major player in the Indian home appliance market, offering a wide range of products like refrigerators, washing machines, air conditioners, and more. The FIIs have increased their holding from 3.64% (December 2023) to 6.47% (March 2024). The stock has already corrected by 54% and the golden crossover being established (RSI 14, SMA 14) at the neutral, the stock may move upwards. It may however be noted that standalone net profits of the company have declined in the quarters ending September 2023 and December 2023 and P/E is also above the industry ratio.

III. Cupid Ltd

CUPID Limited is a leading Indian manufacturer of sexual and reproductive health products, including male and female condoms, personal lubricants, and In-Vitro Diagnostics (IVD) kits. The FIIs have increased their holding from 5.19% (March 2024) to 5.38% (April 2024). CUPID’s net profit witnessed a phenomenal surge of 189% in the quarter ended March 31, 2024. The company’s net profit jumped to ₹23.7 crore, compared to ₹8.3 crore in the same period last year. Sales also saw a significant rise of 52% in the fourth quarter. CUPID reported sales of ₹36.02 crore for the quarter, up from ₹41.5 crore in the previous quarter. Technically, the entry level of the stock can be at 92 if it takes the support and forms a bullish candle. RSI is below the neutral zone and trade can be taken only upon confirmation by both the indicators.