August Fortnight Review: DIIs and MFs Lead Record Buying Against FPI Exit Pressure
FPI Selling Intensifies in Financials & Technology – FPIs executed sharp exits from large-weight sectors, led by Financial Services (₹13,471 Cr) and Information Technology (₹6,380 Cr), reflecting global risk-off sentiment. Heavy selling also hit Oil & Gas (₹4,091 Cr) and Power (₹2,358 Cr), while moderate withdrawals were seen across Healthcare (₹2,095 Cr), Realty (₹1,211 Cr), FMCG (₹1,150 Cr) and Consumer Durables (₹1,133 Cr). The selling pattern underscores a move away from defensives and heavyweights, balancing selective accumulation in infrastructure-oriented themes.
FPI Buying Concentrated in Telecom & Infrastructure Plays – In the first half of August 2025, FPIs showed strong buying interest in select sectors, led by Telecommunication with ₹7,446 Cr inflows, making it the standout gainer. Infrastructure-linked sectors also attracted healthy investments with Construction Materials (₹1,690 Cr), Construction (₹1,378 Cr) and Capital Goods (₹1,132 Cr) drawing attention. Modest inflows were also seen in Metals & Mining (₹606 Cr), Chemicals (₹410 Cr) and Services (₹384 Cr), signaling FPI preference for growth-driven and cyclical opportunities.
FPI Equity Selling Surges Beyond July Levels – Foreign Portfolio Investors (FPIs) stepped up their equity sell-off in the first half of August 2025, recording a net outflow of ₹20,975 Cr—sharply higher than the ₹17,741 Cr withdrawn in July. This includes a secondary market sell-off of ₹23,554 Cr, partially offset by ₹2,579 Cr of investment in primary markets, reflecting selective interest in new listings. With this, net FPI equity outflows for calendar year 2025 have soared to ₹1.16 Lakh Cr, highlighting their sustained bearish stance on Indian equities so far this year.
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