Top 5 large-cap stocks that FIIs and DIIs bet on in March 2025
In March 2025, FIIs turned net buyers in Indian equities, reversing the outflow trend seen earlier in the year, with investments totaling approximately ₹20 billion. Their focus was largely on sectors such as banking, financial services, insurance, telecom, and metals.
Both FIIs and DIIs showed a marked preference for large-cap stocks, underscoring their appetite for stability amid global trade uncertainties and domestic macroeconomic challenges.
Stocks like Hindustan Unilever, ITC, Nestle, Kotak Mahindra Bank, and Hindustan Zinc saw significant gains through March, reflecting institutional confidence in India’s top-tier companies.
Here’s a look at the top five large-cap stocks that saw increased institutional ownership this quarter:
#1 Adani Energy Solutions
Adani Energy Solutions Ltd (AESL), a key part of the Adani portfolio, is India’s largest private power transmission company with operations spanning transmission, distribution, smart metering, and cooling solutions.
As of March 2025, AESL had a market capitalisation of ₹1,096,951 million. FIIs raised their stake from 17.3% to 17.5%, while DIIs increased theirs from 5.8% to 6.3%.
The company has delivered a robust revenue CAGR of 18.7% over the past three years, driven by the steady expansion of its national transmission network and strategic acquisitions that enhanced scale and operational efficiency. Its distribution operations, particularly in high-demand areas like Mumbai and Mundra SEZ, have contributed to stable, recurring revenues.
AESL’s early investments in smart metering have opened up new income streams and improved efficiency. As of March 2025, it had installed 3.13 million smart meters and plans to add another 6-7 million in FY26. The company aims to become India’s leading smart metering integrator.
Favourable government policies, rising electricity demand, and cost-optimisation efforts have supported margin expansion, enabling profit growth to outpace revenues. For the fiscal year ended March 2024, AESL reported a Return on Equity (ROE) of 9.5% and a Return on Capital Employed (RoCE) of 9.8%.
AESL has remained active on the expansion front. In March 2025, it acquired 100% equity in Mahan Transmission Ltd from REC Power Development and Consultancy Ltd, securing a key Gujarat-based project to support green hydrogen and ammonia manufacturing in Mundra.
In Q4 FY25, the company won major projects, including the ₹250 billion HVDC Bhadla-Fatehpur transmission line and the Khavda Phase IV Part-D (Pune-Boisar) project, underscoring its leadership in the energy infrastructure space.
#2 Bank of Baroda
Bank of Baroda (BoB), one of India’s largest public-sector banks, was founded in 1908 and is headquartered in Vadodara, Gujarat. The bank offers a comprehensive suite of services across retail, corporate, and international banking, with a presence in over 20 countries. It is particularly known for its strong digital infrastructure and customer-centric approach.
During the March 2025 quarter, FIIs increased their stake in the bank from 8.90% to 8.98%, while DIIs raised their holdings from 17.86% to 17.97%.
Over the past three years, BoB has delivered a revenue CAGR of 16.8% and a remarkable profit CAGR of 129.7%. This growth has been supported by the expansion of its retail and corporate lending portfolios, improving operational scale and customer reach.
Better asset quality—achieved through a sustained reduction in non-performing assets (NPAs)—has lowered provisioning costs, directly supporting higher profitability. The bank’s digital investments have further enhanced operational efficiency and helped broaden its customer base.
As of 31 March 2024, BoB reported a healthy Return on Equity (ROE) of 15.7% and a Return on Assets (ROA) of 1.1%.
The bank has also been active on the partnership front. In April 2025, it signed a three-year pact with PMC as a “Sustainability Development Partner.” In December 2024, it extended its 15-year technology partnership with TCS for another five years. More recently, in February 2025, BoB signed a Memorandum of Understanding with Tata Power Renewable Energy to finance residential installations under the Pradhan Mantri Surya Ghar Yojana.
Read this | Bank of Baroda’s balance sheet expands, but can investor interest pick up?
Looking ahead, Bank of Baroda plans to roll out new deposit products, including green deposits, to meet evolving customer preferences and align with broader sustainability goals.
#3 Hindalco Industries
Hindalco Industries Ltd, the metals flagship of the Aditya Birla Group, is a global leader in aluminium and copper production. It operates across the full value chain—from bauxite mining and alumina refining to aluminium smelting and downstream processing. In copper, it manufactures cathodes, rods, and wires for industries such as automotive, aerospace, packaging, and construction.
During the March 2025 quarter, FIIs marginally raised their stake in the company from 28.04% to 28.15%, while DIIs increased theirs from 24.53% to 24.68%.
Over the past three years, Hindalco has posted a revenue CAGR of 17.8% and a profit CAGR of 25.1%, reflecting robust demand and strong operational execution.
Global aluminium demand—driven by sectors like automotive, packaging, and infrastructure—has been a key revenue catalyst. Meanwhile, its US-based subsidiary Novelis has maintained its leadership as the world’s largest producer of rolled aluminium products, benefiting from its focus on recycled aluminium and margin-accretive sustainability trends.
Hindalco has also been strategically diversifying into high-growth sectors, including electric vehicles, renewable energy, and advanced electronics, opening up new revenue streams.
As of 31 March 2024, the company reported a Return on Equity (ROE) of 9.5% and a Return on Capital Employed (RoCE) of 11.6%. Its FY25 results are expected in mid-May.
To secure long-term input cost stability, Hindalco recently won the Meenakshi coal mine. On the expansion front, its Aditya FRP project—set to raise total downstream capacity to 600 Kt per annum—is on track for completion by June 2025.
Looking ahead, the company plans to invest ₹450 billion over the next few years across its aluminium, copper, and specialty alumina businesses. These investments will focus on upstream capacity and the development of high-precision, engineered products. Hindalco also aims to quadruple its downstream operations and double its upstream business in India by FY30.
#4 Hindustan Zinc
Hindustan Zinc Ltd (HZL), a subsidiary of Vedanta Ltd, is India’s largest and the world’s second-largest integrated producer of zinc, lead, and silver. The company operates across the full value chain—from mining and smelting to refining and power generation.
In the March 2025 quarter, FIIs increased their stake in HZL from 1.38% to 1.43%, while DIIs raised theirs from 4.12% to 4.14%.
Over the past three years, the company has delivered a revenue CAGR of 8.5%, supported by a rise in global zinc prices and disciplined operational execution.
HZL has focused heavily on operational efficiency and cost optimisation, helping it maintain healthy margins despite commodity market volatility. Its growing silver output—produced as a by-product of zinc mining—has provided an additional boost to profitability.
The company has also ramped up investments in sustainability and clean energy, positioning itself as an environmentally responsible player. These efforts have made HZL increasingly attractive to long-term investors focused on ESG performance.
In March 2025, Hindustan Zinc expanded its partnership with Serentica Renewables to increase its round-the-clock renewable energy capacity from 450 MW to 530 MW. The project, expected to be fully operational by 2027, will help meet more than 70% of the company’s total power requirement through clean energy sources.
Looking ahead, HZL plans to further increase ore production, adopt automation and digital technologies to improve operational efficiency, and reduce its carbon footprint.
#5 Kotak Mahindra Bank
Kotak Mahindra Bank, headquartered in Mumbai, is one of India’s leading private sector banks. Originally established in 1985 as Kotak Capital Management Finance Ltd., it became Kotak Mahindra Finance in 1986 and, in 2003, made history as the first non-banking financial company in India to receive a banking license from the RBI.
As of the March 2025 quarter, FIIs increased their stake from 32.48% to 32.65%, while DIIs raised theirs from 28.79% to 29.13%.
Over the past three years, Kotak Mahindra Bank has posted strong growth, with a revenue CAGR of 19.7% and profit CAGR of 22.2%.
The bank’s retail segment has been a major growth driver, supported by strong customer acquisition, rising digital banking penetration, and a diverse product suite. Its non-banking verticals—asset management, insurance, wealth management, and investment banking—have added stability and profitability through diversified income streams.
As of 31 March 2024, the bank reported an ROE of 14% and an ROA of 2.4%. The FY25 annual results are expected on 3 May.
In recent developments, Kotak partnered with T-Hub to launch the Kotak BizLabs program, which supports early-revenue startups in agritech, fintech, and edtech. On 23 January 2025, it acquired Standard Chartered Bank India’s personal loan portfolio for ₹33.3 billion, expanding its consumer lending base.
Read this | Kotak Bank: Lower cost of funds prevents margin slide
Looking ahead, the bank has set an ambitious target of becoming one of the top three private sector banks in India by 2030. To achieve this, it plans to grow both organically and inorganically, expand its branch network, and continue investing in digital and technological capabilities.
Conclusion
The rise in FII and DII investments in large-cap companies in March 2025 reflects growing confidence in the stability and long-term prospects of India’s leading sectors.
By concentrating on large-cap stocks, institutional investors are signalling a preference for resilience and sustained value amid global uncertainty.
For individual investors, thorough due diligence remains essential—evaluating a company’s fundamentals, corporate governance, and valuation should be central to any investment decision.
Happy Investing.
Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such.
This article is syndicated from Equitymaster.com