India’s stock market is buzzing with excitement as Vanguard Fund’s India equity portfolio posts remarkable returns in the first half of FY26. On August 17, 2025, Vanguard emerged as one of the top-performing foreign institutional investors, demonstrating shrewd stock selection and a powerful run in several Indian equities.
Introduction
Vanguard Fund has swiftly solidified its reputation in the Indian market, ranking among the top five active foreign institutional investors. Its diversified approach, spanning 41 BSE-listed companies, has resulted in holdings worth Rs62,150 crore—an impressive 44% increase from Rs43,000 crore at the end of the March quarter. This growth is not driven by market momentum alone, but by strategic decisions that have helped it benefit from the country’s economic dynamism.
Key Highlights From FY26’s India Rally
Vanguard’s India equity portfolio surged 44% in Q2 FY26 to Rs62,150 crore, putting it firmly on the radar of global investors.
10 key stocks in Vanguard’s holdings have delivered robust returns ranging from 20% to 80% this fiscal year, demonstrating both depth and precision in stock-picking.
In total, 14 stocks posted double-digit gains, highlighting the broader success of Vanguard’s India strategy so far in FY26.
Top contributors include Delhivery, Care Ratings, RBL Bank, and CarTrade Tech, which have been standout performers in the portfolio.
Breakdown: 10 Stocks Fueling Vanguard’s FY26 Success
The Economic Times and ETMarkets report a diverse spread of gains across Vanguard’s India equity picks:
Delhivery: This logistics and delivery platform has surged 82% this year, moving from Rs255 to Rs464. Vanguard holds a 1.05% stake. Delhivery’s rally underscores the boom in Indian e-commerce logistics infrastructure and efficiency.
Care Ratings: Up 48% in FY26, rising from Rs1,101 to Rs1,631, with Vanguard owning 2.27%. Strong financial sector reforms have shined a light on independent ratings firms.
RBL Bank: Gained 18%, from Rs98 to Rs116; Vanguard’s stake is 4.5%. The banking sector’s credit growth and improved asset quality have favored mid-sized lenders like RBL Bank.
CarTrade Tech: The stock posted double-digit gains, supporting Vanguard’s bullish view on digital automotive platforms.
Sectoral Diversification and Strategy
Vanguard’s approach relies on diversified exposure. Alongside financials, logistics, and tech, the fund holds significant positions in private sector banks (such as HDFC Bank and Axis Bank), healthcare (Max Healthcare Institute Ltd.), and renewables (Suzlon Energy Ltd.), among others. This allows it to capture both short-term momentum and long-term structural growth in key sectors.
Notable Observations
The portfolio’s strong upward trajectory in Q2 FY26 is a result of increased institutional inflows and a robust investment climate in India.
Vanguard’s ability to balance technology, financials, and industrial stocks provides resilience amid market volatility.
The fund’s 41 Indian equity holdings constitute one of the broadest and most agile bets by any global asset manager in the country.
What’s Next for Investors?
Vanguard’s stewardship of India equities shows the rewards of a disciplined investment approach, combining local sector expertise with global analysis. For those holding or considering exposure to these stocks, FY26 presents a landscape of continued optimism, although periodic volatility remains a reality. As India’s economy and financial markets mature, foreign institutional investors like Vanguard are poised to play an even more influential role.
Conclusion
With ten stocks rallying between 20% and 80%, and a total portfolio valuation rising by Rs19,150 crore in just one quarter, Vanguard proves how global funds can capitalize on India’s growth story. Investors tracking the Indian market may do well to note Vanguard’s picks—not just for today’s results, but as signals for tomorrow’s opportunities.
Source: The Economic Times, ETMarkets, MarketsMojo
