Institutional Heavyweights: Top Stock Picks by DIIs and Mutual Funds in Q4 2026

When the “Smart Money” moves, the market listens. Data from the March 2026 quarter reveals that Domestic Institutional Investors (DIIs) and Mutual Funds have significantly increased their stakes in several key players across the Nifty 500. Whether it’s high-growth consumer brands or industrial giants, institutional confidence is shifting.

1. DII Top Conviction Picks (Stake Increase > 200 bps)

These nine companies saw the most significant jump in DII shareholding between December 2025 and March 2026:

• Vishal Mega Mart: Led the pack with DII holdings surging from 25.47% to 32.73%.

• Eternal: A massive jump in interest, with holdings rising to 35.98%.

• HDFC Bank: Despite recent volatility, DIIs increased their stake to 40.31%.

• Fortis Healthcare: Now sees DII ownership at 31.34%.

• Aptus Value Housing Finance: Institutional interest climbed to 29.44%.

• Cholamandalam Financial Holdings: Stake rose to 26.55%.

• Bharat Heavy Electricals (BHEL): Increased from 19.7% to 23.98%.

• Supreme Industries: DIIs now hold 19.23%.

• Jindal Saw: Witnessed a stake increase to 5.79%.

2. Mutual Fund Favorites: High Volume Additions

Mutual funds added over 1 crore shares each to 46 different stocks in March 2026. However, the strategy varied between chasing momentum and “bottom fishing” (buying the dip).

The Performance Leaders (Price Gain > 15%)

These stocks saw both massive MF buying and strong price rallies:

• Adani Power: MF holdings reached 69.7 crore shares; price up 29%.

• Urban Company: MF holdings more than doubled to 13.9 crore shares; price up 26%.

• Billionbrains Garage Ventures: Holdings rose to 33.3 crore shares; price up 19%.

• PhysicsWallah: MF holdings hit 15.9 crore shares; price up 16%.

• NTPC Green Energy: Holdings grew to 32.2 crore shares; price up 16%.

The “Bottom Fishing” Targets

Interestingly, MFs aggressively bought these stocks despite a double-digit decline in their share prices, suggesting they believe these companies are currently undervalued:

• HDFC Bank & Yes Bank: Saw the largest volume additions (21 crore and 20 crore shares, respectively) despite price drops of ~10%.

• Lodha Developers: Price down 17%; MF holdings nearly doubled.

• Tata Motors: Price down 15%; MF holdings rose to 39 crore shares.

• Bank of Baroda: Price down 14%; MF holdings increased to 54.3 crore shares.

• Swiggy & HDFC Life: Both saw price declines of 13% but recorded steady MF accumulation.

Summary Table: Institutional Shift at a Glance

Note: Increasing institutional stakes are often a sign of long-term stability, but individual investors should always align these trends with their own risk appetite and financial goals.