8 High-Growth Smallcap Stocks FIIs and DIIs Can’t Stop Buying in 2025

  As India’s stock market evolves in 2025, smallcap stocks are emerging as a favorite among Foreign Institutional Investors (FIIs) and Domestic Institutional Investors (DIIs). These companies, with market capitalizations typically under ₹5,000 crore, offer high growth potential backed by strong sales, profitability, and Return on Capital Employed (ROCE). In this blog, we highlight eight smallcap stocks that institutional investors are consistently buying, showcasing their potential to deliver market-beating returns. Let’s explore why these stocks are on the radar of savvy investors. The Appeal of Smallcap Stocks in 2025 Smallcap stocks are known for their ability to generate significant returns, especially when supported by robust fundamentals and institutional backing. FIIs and DIIs are drawn to companies with scalable business models, consistent revenue growth, and efficient capital utilization. Despite their volatility, these stocks can be a game-changer for investors seeking hi...
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Auto Stocks Surge on Strong July Sales and Q1 Earnings

 

The Indian auto sector witnessed a robust rally today, with the Nifty Auto index climbing over 1.5% to become the top sectoral gainer. This surge, driven by strong July sales figures and positive Q1 FY26 earnings, helped the index snap a three-day losing streak that saw it drop nearly 2%. The downturn was triggered by concerns over US President Donald Trump's announcement of a 25% tariff, alongside additional tariffs on India, which had weighed heavily on investor sentiment.

Hero MotoCorp Leads the Charge

Hero MotoCorp emerged as the standout performer, with its shares soaring over 3.4% to Rs 4,458 per share. The two-wheeler giant reported a stellar 21% year-on-year (YoY) sales increase, selling 4.5 lakh units in July 2025. Motorcycle sales grew by 18% YoY to 4 lakh units, while scooter sales surged an impressive 64% YoY to 49,140 units. The company’s strong domestic and export performance underscored its market resilience, boosting investor confidence.

TVS Motor Shines with Robust Earnings

TVS Motor also contributed to the sector’s gains, with its shares rising over 3% to Rs 2,954 apiece. The company reported a 35% YoY increase in net profit to Rs 779 crore for Q1 FY26, driven by a 32% rise in operating EBITDA to Rs 1,263 crore. TVS Motor’s monthly sales grew by 29% YoY to 4.56 lakh units in July 2025, with exports jumping 46% YoY and electric vehicle (EV) sales climbing 10% YoY. These figures highlight TVS Motor’s growing presence in both traditional and electric mobility segments.

M&M and Other Auto Stocks Join the Rally

Mahindra & Mahindra (M&M) also saw its shares rise, contributing to the upward momentum. The broader auto sector benefited from strong consumer demand and improved financials, helping offset earlier tariff-related concerns. The positive sales and earnings reports signal a promising outlook for the industry, despite global trade uncertainties.

Market Outlook

The rally in auto stocks reflects strong fundamentals and growing investor optimism about the sector’s growth potential. With companies like Hero MotoCorp, TVS Motor, and M&M posting impressive sales and earnings, the Indian auto industry is well-positioned to navigate challenges and capitalize on domestic and export opportunities. Investors will likely keep a close eye on upcoming economic policies and global trade developments for further cues.

Disclaimer: The information provided is for informational purposes only and not intended as investment advice. Always conduct thorough research before making investment decisions.

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