Nestle, Eternal, Groww, Yes Bank and Tech Mahindra; top five stocks with strong FII buying in Q2FY27

Indian benchmark indices extended their fall for the fourth consecutive day on Friday, heading for a weekly loss. A sharp rebound in crude oil prices this month has once again raised fears of sticky inflation. In addition, investors are navigating Q2FY27 earnings for better opportunities in a rather dull market scenario. The benchmark NIFTY50 index has delivered -14% returns, underperforming its global peers. However, at the same time, a few stocks have shown strong resilience to the massive selling pressure in the past few months. Much of this rally was driven by strong institutional buying, strong earnings growth, and affordability in valuations.

Here are the top five stocks that witnessed FII buying in the September quarter

Nestle India

Though Nestle shares have been in a free fall this week after FSSAI’s notice on branding infant food products, the shares have largely witnessed a 33% rally from April 2 to August 10 as FII’s have consistently increased their stake from 9.74% in Q4FY26 to 11.7% in Q2FY27. For the quarter ended September 2026, revenue grew by 20% YoY to ₹6,782 crore, driven by robust, double-digit growth in volumes. The EBITDA margin for the quarter also remained healthy at 23.8%, and the profit after tax grew by 36% YoY to ₹1,026 crore. The stock is also trading at a price-to-earnings (PE) ratio of 68x, lower than its five-year median of 75x.

Eternal

Shares of Eternal, parent company of food-delivery platform Zomato and quick commerce platform Blinkit, were in focus after delivering stellar results for the quarter ended September 2026. Besides this, the shares have witnessed a inflow of foreign institutional capital during the quarter. The FII’s raised their stake in the company to 33.01% for the quarter ended September 2026, as compared to 29% in the previous quarter. Consequently, the shares rallied as much as 30% during the quarter, outperforming the broader market sentiment.

Tech Mahindra

Owing to robust fundamentals, the stock also witnessed increased interest from foreign investors as they raised their stake in the company from 18.59% in Q4FY26 to 20.76% in Q2FY27. Consequently, the shares have rallied as much as 25% from their March lows till September 30, 2026. While the ahead of the earnings, the shares rallied over 23% in just less than seven trading sessions.

Groww

Shares of Billionbrains Garage Ventures Ltd, brand owner of India’s largest brokerage platform Groww, which got listed in November 2025, also witnessed a euphoric rise in foreign institutional holdings. The FII’s increased their stake from 2.5% in Q4FY26 to 10.9% in Q2FY27. However, the shares have remained largely muted during this period amid broader pessimism around the sector owing to a constantly changing regulatory environment.

Yes Bank

Shares of one of the key private sector lenders, Yes Bank, saw a 23% drop in just six trading sessions, after the Supreme Court upheld the High Court’s judgement on the bank’s write-down of AT-1 bonds worth ₹8,415 crore. The company delivered strong growth in net profit at 65% YoY to ₹1,080 crore, led by a 22.7% YoY increase in net interest income.

Foreign institutional investors have remained largely positive, consistently increasing their holdings in the company. The FIIs’ holding in the bank now stands at 47.8% as of Q2FY27, as compared to 44.9% in the same period the previous year. Investors will closely monitor the impact of the court’s order on the coming earnings for Q3FY27 and FY27.