Three monopoly stocks where FIIs increased their stake in June quarter | Stock Market News

When investors look for stocks to buy, they often seek companies that are hard to replace,with a dominant position in their industry, few credible rivals, and a loyal customer base that keeps coming back.

These are the companies investors often call "monopoly" or "near-monopoly" stocks.

No listed company runs a true monopoly, of course. But a handful have built such strong, entrenched positions that competitors struggle to even come close.

Interestingly, even as the June quarter saw FIIs pull out a net ₹49028 crore, part of a sustained selloff that pushed overall FII holdings in Indian equities to a 14-year low of 15.88%, a few monopoly-style stocks bucked the trend and saw FII buying.

We look at three such stocks that FIIs bought into during the June quarter.

The Multi Commodity Exchange of India (MCX) is a state-of-the-art commodity derivatives Exchange that facilitates online trading of commodity derivatives transactions, thereby providing a platform for price discovery and risk management.

MCX is India’s largest exchange in the commodity derivatives segment, and the world’s fourth largest exchange by the number of commodity derivative contracts traded.

MCX is the leader in commodity derivatives exchanges in India, with 98% market share in terms of commodity futures turnover. It has 100% market share in precious metals, base metals and energy.

During the June 2026 quarter, FII holding in the company increased to 29.85% from 26.07% in the March quarter.

This can be on the back of robust FY26 performance. Operating revenue during FY26 grew by 107% YoY to ₹23.02 bn, doubling the revenue.

MCX's net profits crossed ₹13.32 bn, up a hefty 138%.

Further, in June 2026, MCX launched Silver 100' futures contracts, enabling retail investors and small jewelers to gain exposure to silver in quantities as low as 100 grams, expanding access to a market previously dominated by larger institutional players.

Going forward, the company plans to launch new products.

BHEL is India's largest engineering and manufacturing enterprise in the energy and infrastructure sectors.

Established in 1964, the company is among the world's leading power equipment manufacturers and has played a significant role in supporting India's journey towards self-reliance in the power sector.

BHEL maintained its lion’s share of 54% in the country’s total installed thermal capacity of utility-scale power projects, along with 60% of nuclear power installed capacity (secondary side) and 43% of hydro power installed capacity in the country, by the end of FY 2025-26.

Overall at utility scale, including thermal, nuclear and hydro segment, BHEL enjoys 53% share in total installed conventional capacity of the country.

Further, it is the only company associated with all three stages of the Indian Nuclear Power Program.

In the June 2026 quarter, the FII holding in the stock rose by 2.29 percentage points to 9.52%.

As of 31 March 2026, the company reported its highest-ever order book of ₹2.4 trillion ( ₹240,000 crore), with nearly 81% of orders coming from the power sector, providing strong revenue visibility for the coming years.

Further in June 2026, the central government is pushing states to fast-track clearances for nuclear power plants and large-scale battery storage projects, as India races to build the energy infrastructure needed to support its rapidly expanding data center and artificial intelligence sector.

BHEL's strong indigenous manufacturing capabilities and decades of expertise in the nuclear value chain make it a key stock to watch.

Going forward, the company's focus is expanding beyond thermal power.

Established in November 1975, the state-owned company has grown from producing 79 m tonnes at inception to becoming the world's largest coal producer today.

Across eight Indian states, the company operates in 85 mining areas and manages 310 working mines. Coal India accounts for nearly 80% of India's domestic coal production and supplies around 75% of the country's coal-based power generation.

During the June 2026 quarter, FIIs increased their stake in the company by 1.99 percentage points to 10.37%.

This can be attributed to the Union cabinet just greenlit a massive ₹37,500 crore incentive scheme to push coal and lignite gasification projects forward in May 2026.

As its subsidiary, Coal Gas India, is focused on coal gasification projects. This makes Coal India a stock to watch amid the government's ₹375 bn coal gasification scheme, as the policy is expected to create a large new demand avenue for domestic coal beyond the power sector.

Monopoly and near-monopoly businesses often enjoy strong competitive advantages, high entry barriers, and pricing power, making them attractive long-term investment candidates.

When foreign institutional investors (FIIs) increase their stake in such companies, it can signal confidence in their growth prospects and business fundamentals.

However, FII buying alone should not be the basis for an investment decision. Investors should also evaluate factors such as earnings growth, order book, valuations, debt levels, cash flows, management quality, and the company's long-term growth opportunities.

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

Equitymaster is India's leading independent equity research platform, providing in-depth research and analysis on BSE- and NSE-listed companies since 1996. As a SEBI-registered Research Analyst [Registration No. INH000021128], Equitymaster covers the full spectrum of Indian equities — bluechip stocks, midcap stocks, smallcap stocks, and microcap stocks.<br><br> At the heart of Equitymaster's research philosophy are the principles of value investing — particularly the margin of safety and the primacy of investment over speculation. All research is produced by an independent team of SEBI-registered research analysts with vast experience in Indian financial markets, using detailed systems and processes developed entirely in-house.<br><br> With over 17 lakh readers across 72 countries, Equitymaster is one of India's leading equity research publications. Since 1996, the goal has remained the same — to deliver honest, unbiased, and credible equity research that helps Indian investors make better, more informed decisions.

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