August’s Top 15 Stock Picks: See Which Names FIIs and DIIs Can’t Stop Buying!

August 2025 witnessed significant institutional investor activity across Indian equity markets, with divergent patterns between foreign and domestic institutional investors shaping market dynamics. Despite Foreign Institutional Investors (FIIs) withdrawing ₹46,903 crore from Indian equities, Domestic Institutional Investors (DIIs) remained bullish, pumping in ₹94,829 crore. This institutional preference provides crucial insights into the stocks that captured smart money attention during the month.

Large-Cap Champions: Banking and Tech Giants Lead the Charge

Eternal Ltd. emerged as the undisputed leader in large-cap buying, commanding institutional investments worth ₹7,643 crore. The food delivery and quick commerce giant's remarkable performance was driven by Blinkit's stellar growth trajectory, with quick commerce Net Order Value surpassing food delivery for the first time in an entire quarter. The company's Q1 results showcased impressive 70% year-on-year revenue surge, reinforcing investor confidence in the digital consumer services landscape.

Infosys Ltd. secured the second position with ₹6,355 crore in institutional buying. The IT bellwether's Q2 FY25 performance demonstrated resilience with 5.1% year-on-year revenue growth to ₹40,986 crore and stable operating margins at 21.1%. The company's large deal wins totaling $2.4 billion and strong momentum in financial services bolstered institutional confidence.

Banking heavyweights dominated the remaining slots, with HDFC Bank Ltd. attracting ₹5,053 crore despite implementing revised service charges from August 1, 2025. The bank's historic first bonus issue in a 1:1 ratio marked a significant milestone for long-term shareholders. ICICI Bank Ltd. and Axis Bank Ltd. rounded out the top five with ₹4,462 crore and ₹3,475 crore respectively, reflecting continued institutional faith in India's private banking sector fundamentals.

Mid-Cap Momentum: Fintech and Communications Steal the Show

One97 Communications Ltd. (Paytm) topped mid-cap institutional buying with ₹1,864 crore, following RBI's approval for payment aggregator license on August 12, 2025. The fintech player reported a dramatic turnaround with consolidated net profit of ₹122.5 crore in Q1 FY26, reversing from a net loss of ₹544.6 crore in the previous year. Revenue from operations surged 27.7% year-on-year to ₹1,917.5 crore, driven by growth in subscription merchants and higher Gross Merchandise Value.

Tata Communications Ltd. captured ₹1,712 crore in institutional flows, benefiting from robust digital revenue growth of 52% year-on-year in Q2 FY25. The company's consolidated revenue reached ₹5,767 crore, up 18.4% year-on-year, with data revenue contributing ₹4,834 crore representing 21% growth. Strategic wins across international markets and expanding fiber network across Tier 1 and Tier 2 cities supported investor interest.

Info Edge (India) Ltd. attracted ₹1,492 crore despite facing headwinds in white-collar hiring, which dropped to 3% in August from 7% in July. The Naukri.com parent reported strong Q1 performance with 27% year-on-year jump in consolidated net profit to ₹296 crore and 17% revenue growth to ₹791 crore.

Small-Cap Stars: Infrastructure and Specialty Chemicals Shine

JSW Cement Ltd. led small-cap institutional buying with ₹1,242 crore following its successful IPO listing on August 18, 2025. The cement manufacturer's IPO was subscribed 8.22 times, reflecting strong market appetite for green cement manufacturing capabilities. With installed grinding capacity of 2.06 crore tonnes annually and distribution through over 4,600 dealers, the company represents a compelling play on India's infrastructure growth story.

Clean Science And Technology Ltd. secured ₹1,091 crore in institutional investments backed by strong Q1 FY26 results showing 6% year-on-year profit growth to ₹70 crore. The specialty chemicals manufacturer achieved record EBITDA margins exceeding 46%, driven by favorable product mix and operational efficiency. Revenue from operations grew 8% to ₹240 crore, demonstrating resilient demand for specialty chemical products.

Sai Life Sciences Ltd. attracted ₹917 crore despite a significant block deal transaction where TPG Asia exited its stake worth ₹2,676 crore. The contract research and manufacturing organization reported impressive Q1 FY26 performance with 77% year-on-year revenue growth to ₹496 crore and EBITDA of ₹125 crore. The company's expanding capabilities in pharmaceutical services supported continued institutional interest.

Market Dynamics and Investment Themes

The August 2025 institutional buying patterns reveal several key investment themes. Financial services companies across all market caps attracted significant flows, accounting for seven of the fifteen top picks, reflecting confidence in India's financial sector fundamentals despite global headwinds.

Technology and digital services emerged as another dominant theme, with companies like Eternal, Infosys, and Info Edge commanding substantial institutional interest. This preference aligns with India's digital transformation narrative and growing consumer adoption of technology-enabled services.

Infrastructure and materials companies like JSW Cement and Clean Science benefited from India's continued focus on manufacturing and construction activities. The emphasis on green cement and specialty chemicals reflects institutional preference for companies aligned with sustainability and value-added manufacturing.

The contrasting behavior between FIIs and DIIs during August 2025 highlights the maturation of India's domestic institutional investor base. While foreign investors remained cautious due to expensive valuations and global factors, domestic institutions demonstrated conviction in India's long-term growth story by deploying significant capital across market segments.

This institutional activity provides valuable insights into sectors and companies positioned to benefit from India's evolving economic landscape, with smart money betting on digital transformation, financial services expansion, and infrastructure development as key growth drivers for the months ahead.

Disclaimer: All investments carry market risks and past performance is not indicative of future results; please read scheme documents and consult a financial advisor before investing.