New Delhi, April 28 -- Investors usually favour companies in which foreign institutional investors (FIIs) hold a stake, as FIIs are known to prefer businesses with robust corporate governance, strong liquidity, and scalable earnings growth.

Rising FII ownership can indicate investor confidence and attract market participation. However, it should not be the sole consideration for equity investment.

FIIs may adjust holdings due to global interest rates, currency movements, ETF flows, or broader risk events unrelated to company fundamentals. High FII stake does not guarantee returns, nor does low stake imply poor business quality.

Investors should also assess valuations, earnings growth, debt, promoter quality, sector outlook, cash flow, ...