Synopsis: Starting from the first quarter of CY26, several companies operating in India have emerged as the “go-to” stocks for institutional money. Analysis shows that securities held by over 100 mutual fund schemes have experienced substantial gains, some rising even 55% within less than 100 trading days.
Today’s market is characterized by increased institutional conviction. If a particular security is held in at least 100 mutual fund schemes, that means that institutional investors see value in the management and earnings capacity of that company. As of the mid-month of April 2026, such institutional behavior is observed in sectors relevant to the government’s record-high capital expenditure outlay amounting to Rs.12.2 lakh crore. Retail investors can benefit from watching these “Mutual Fund Darlings.”
1. Hitachi Energy India
A symbol of excellence in the portfolios of most mutual funds today, Hitachi Energy is one of those rare gems. As India is rapidly transitioning into renewable energy sources, the company’s expertise in power transmission and the application of high voltage direct current technologies (HVDC) makes it invaluable. Fund managers have increased their stake in Hitachi since it won almost all of the grid modernization tenders, raising its price from Rs.18,310 to over Rs.28,000 in early 2026.
2. Acutaas Chemicals
An example of the surge in specialty chemicals, Acutaas Chemicals has emerged as the high-conviction pick of institutional investors who appreciate its ability to increase profitability through a “move up the chain.” The company has switched its attention from commodity-based to specialized high-margin chemicals used in electronics and pharmaceutical industries. Fund managers see this as a long-term structural investment as the firm is part of a China Plus One strategy.
3. L&T Finance
As an emerging retail-oriented player in the NBFC space, L&T Finance enjoys popularity among institutional players who approve of its ambitious “Lakshya 2026” targets. These targets helped improve asset quality and the share of retail loans as L&T Finance has managed to build a robust digital infrastructure. As a product of L&T Group, this firm has also become one of the main components in many diversified equity schemes.
4. Aditya Birla Capital
This NBFC operates as a full-fledged conglomerate offering fund managers the exposure to a variety of products including life insurance, asset management, and lending. As a result, the company has attracted increasing interest due to the momentum related to scaling its digital platform. As the firm manages to lower customer acquisition costs through the digital approach, it helps sell other services within its wide client base.
5. Muthoot Finance
Muthoot Finance is the favorite of those institutions who seek ways to hedge against inflation. Gold prices have been consistently reaching their peaks at nearly Rs. 1.6 lakh per 10 gram. This translates into better loan-to-value (LTV) ratios, providing the company with more margin of safety. Despite being a relatively traditional NBFC with branches covering all parts of India, Muthoot Finance remains invincible in terms of competition because of its massive physical network.
Outlook wise, we can conclude that the future looks bright for those stocks. High P/E multiples do not necessarily imply that these stocks have little upside left. In fact, they provide mutual funds with a certain price floor due to the huge number of institutional schemes involved. For the rest of 2026, we expect the performance of these darlings to lead the indices provided that the earnings delivery is on par with institutional expectations.
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