Month: February 2025

Record FPI Sell-Off: Worst Start in a Decade – Foreign Portfolio Investors (FPIs) have offloaded a staggering $11 billion (₹99,299 Cr) worth of Indian equities in just six weeks of 2025, marking the highest-ever outflow for this period. This relentless selling spree has triggered the worst start for domestic markets in nearly a decade, intensifying volatility and investor caution.

DII Power Play: The Market’s Backbone – DIIs infused ₹26,019 Cr into equities in the first half of February, cushioning the impact of FPI selling. Their confidence in the market is reflected in their massive ₹112,611 Cr investment from January 1 to February 15.

FPI Sell-Off: Financials Services Sector Hit Hard in 2025 – Financial Services took the biggest hit, with FPIs offloading a massive ₹30,293 Cr, signaling heightened risk aversion. Consumer Services (₹10,609 Cr), FMCG (₹9,764 Cr) and Capital Goods (₹8,903 Cr) also faced heavy selling, reflecting caution in discretionary spending.

Selective Buying: Focus on Telecom, Healthcare and Chemicals – Amid a significant sell-off in the first half of February, FPIs flocked to Telecommunication, leading with ₹2,337 Cr inflows, while Healthcare attracted ₹1,534 Cr as a defensive bet. Information Technology, Chemicals, Services and Textiles also gained traction.

For a comprehensive understanding and more insights, please go through our detailed report.

January 2025 Equity MFs Insights: Market Jitters, SIP Resilience & Inflow Trends

January Kickoff: Equity Mutual Funds Face a Dip – Equity mutual funds took a hit at the start of 2025, with Net Assets Under Management (AUM) slipping 3.62% to ₹29.47 Lakh Cr. The decline was fueled by a correction in Mid Cap and Small Cap stocks, dampening investor sentiment.

Mutual Funds Double Down on High-Conviction Stocks – Equity mutual fund schemes are doubling down on fresh investments in high-potential stocks, showing a strong preference for companies like Adani Wilmar, Bajaj Finance, BSE, Maruti Suzuki, Trent, Apollo Hospitals, Grasim Industries, Kotak Mahindra Bank, M&M, Navin Fluorine, SRF, Cholamandalam Investment & Finance and Indus Towers. Adding to their aggressive stance, 23 equity mutual funds have also participated in the Laxmi Dental IPO, signaling confidence in new opportunities.

Equity Schemes Exit Key Positions in Major Companies – Several equity schemes have completely offloaded their holdings in companies like Waaree Energies, HCL Technologies, Kalyan Jewellers, Jindal Steel & Power, Dabur India, CDSL, Sona BLW Precision Forgings, Hyundai Motor India, Bajaj Housing Finance, Voltas, Motilal Oswal Financial Services, Hindalco Industries and Netweb Technologies India, signaling a shift in investment strategy.

Mutual Funds Boost Mid-Cap Bets, Trim Coforge & Indian Hotels – Among the top-traded mid-cap stocks, equity mutual fund schemes actively invested in Adani Wilmar, Dixon Technologies, Persistent Systems, Indraprastha Gas, IndusInd Bank, Max Healthcare, ICICI Lombard and Bharat Forge, signaling confidence in these stocks. On the flip side, some schemes opted to pare down holdings in Coforge and The Indian Hotels, indicating a strategic portfolio reshuffle.

For a comprehensive understanding and more insights, please go through our detailed report.

The Mutual Fund industry’s average AUM dipped to ₹68.04 Lakh Cr in January, a 1.85% decline from previous month’s average AUM despite hefty net inflows of ₹1.87 Lakh Cr.

Equity-oriented schemes continued their positive streak, recording net inflows of ₹39.69K Cr.

ELSS, Focused and Large Cap Funds experienced remarkable surges in inflows, skyrocketing by 324%, 72% and 52% respectively.

SIP inflows saw a slight dip of 0.2%, declining to ₹26,400 Cr from ₹26,459 Cr.

Inflows in Index Funds and Other ETFs surged indicating a strong investor preference for passive investment strategies.

The average AUM of debt funds grew by 0.99% in January, driven by an inflow of ₹1.28 Lakh Cr, reversing from ₹1.27 Lakh Cr outflows in December.

For an in-depth exploration, read through our comprehensive Mutual Fund Flow Report for January, 2024.

January’s Aggressive FPI Selloff in Key Sectors – FPIs offloaded heavily in Financial Services (₹24,949 crore), with notable outflows in Consumer Services and Information Technology, amid global slowdown fears. Auto & Auto Components, Capital Goods , Healthcare, FMCG and Power also faced significant sell-offs due to cautious sentiment and valuation concerns.

Selective FPI Bets Amid Bearish Trend – Despite a broad selloff, FPIs showed interest in select sectors with Textiles leading at ₹602 crore, followed by Chemicals, Diversified, Media & Entertainment and Telecommunication, reflecting confidence in export-driven growth, specialty chemicals, and digital infrastructure.

FPIs Selloff: Global Sentiment Turns Cautious– FPIs withdrew ₹78,027 crore from Indian equities in January, signaling risk-off sentiment due to global uncertainties. Notably, there was net buying on just one trading day out of the 23 sessions in January, highlighting persistent selling pressure. In contrast to the secondary market sell-off, FPIs showed interest in the primary markets with purchases worth ₹3,877 crore. A modest inflow of ₹571 crore was recorded in the debt segment, reflecting selective interest in fixed-income securities.

DII Power Play: Strong Support Amid Market Volatility – DIIs infused ₹86,592 crore into equities in January, providing strong support amid foreign outflows. Their consistent buying reflects robust confidence in India’s economic fundamentals and growth prospects.

For a comprehensive understanding and more insights, please go through our detailed report.