July Fortnight Review: FPIs Slash Equities, Ramp Up Debt; DIIs & MFs Turn Cautious
FPI Selloff Hits IT and FMCG: Defensive Sectors See Heavy Profit Booking – The Information Technology sector bore the brunt of FPI selling in early July, with massive outflows of ₹5,479 Cr, indicating a continuation of profit-booking seen over recent months. FMCG(₹1,428 Cr) and Consumer Durables(₹1,292 Cr) were the next in line, suggesting that FPIs are turning cautious on defensives amid stretched valuations. Other sectors witnessing notable exits include Automobiles(₹1,159 Cr), Healthcare(₹757 Cr), Realty, Media and Construction.
FPI Sectoral Buys: Services, Metals and Consumer Plays Shine in July – During the first half of July 2025, FPIs showed selective buying interest, primarily in domestic-facing and infrastructure-related sectors. Leading the charge was the Services sector with ₹2,733 Cr of inflows, followed by Metals & Mining at ₹1,724 Cr. Consumer Services (₹953 Cr), Capital Goods (₹922 Cr), Oil & Gas (₹900 Cr) and Financial Services (₹820 Cr) drew notable FPI interest, along with modest picks in Telecommunication and Textiles.
FPI Investment Scorecard 2025: Telecom and Financials Lead the Buying Spree – For year-to-date, FPIs favoured Telecommunication (₹26,968 Cr), Financial Services (₹14,537 Cr) and Services (₹10,027 Cr), with steady flows into Chemicals, Media, Textiles and Oil & Gas—highlighting a tilt towards structural growth and domestic demand themes.
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