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July Snapshot: FPIs Dump Equities Aggressively in Second Half; DIIs and MFs Provide Strong Support

July’s Sectoral Sell-Off: FPIs Slash Positions in IT & Financials

  • Tech & Financials Bear the Brunt: FPIs executed an aggressive sell-off in Information Technology, dumping ₹19,901 Cr—with a sharp ₹14,422 Cr outflow in the second half alone. Financial Services also witnessed heavy selling, with ₹5,900 Cr of net outflows, reflecting risk aversion amid global headwinds and profit booking.
  • Cyclical Sectors Under Pressure: Selling extended to Realty (₹3,933 Cr)Automobile & Auto Components (₹3,584 Cr)Oil & Gas (₹3,272 Cr), and Consumer Durables (₹2,614 Cr). Even Construction and Media saw steady exits, indicating a broad-based pullback from cyclical and rate-sensitive sectors in the face of macro uncertainties.

FPIs Bet on Domestic Demand and Defensive Plays in July

  • Services, Consumption & Mining Lead Buys: Despite net equity outflows in July, FPIs selectively bought into domestic-facing sectorsServices (₹3,457 Cr)Metals & Mining (₹3,365 Cr) and Consumer Services (₹3,017 Cr) topped the buy list, reflecting a tilt toward consumption-led growth and earnings visibilityFMCG staged a sharp rebound, reversing a ₹1,428 Cr sell-off in the first half with a ₹2,986 Cr buy-in later, ending the month with ₹1,558 Cr inflows.
  • Broader Defensive Buying Continues, But Capital Goods Wobbles: FPIs also favored Telecom (₹1,473 Cr)Chemicals (₹1,129 Cr) and Construction Materials (₹329 Cr). However, Capital Goods witnessed a shift in sentiment—turning from ₹922 Cr buying in the first half to ₹617 Cr selling in the second, ending with a tepid ₹305 Cr net inflow.

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