August Snapshot: FPIs Extend Equity Selloff, DIIs and MFs Lead with Strongest Monthly Inflows of 2025
August’s Sectoral Moves: FPIs Cut Financials & Information Technology
- Financials & IT Lead the Sell-Off: FPIs pared down positions heavily in Financial Services (₹23,288 Cr) and Information Technology (₹11,285 Cr), the hardest-hit sectors in August. Financials saw outflows of ₹13,471 Cr in the first half and ₹9,817 Cr in the second, while IT recorded ₹6,380 Cr selling early in the month and ₹4,905 Cr in the latter half.
- Oil, Power & Consumer Plays Under Fire: Selling pressure also extended to Oil & Gas (₹6,108 Cr) and Power (₹4,066 Cr), while Consumer Durables (₹1,969 Cr), Healthcare (₹1,417 Cr), Realty (₹1,245 Cr) and FMCG (₹1,097 Cr) witnessed moderate but steady exits.
Selectively Buy Domestic Plays: Telecom & Autos Attract Inflows
- Telecom & Autos Emerge as FPI Favorites: FPIs placed big bets on Telecommunication, emerging as the top buy with ₹5,766 Cr of net inflows. Interestingly, flows were sharply front-loaded, with a massive ₹7,446 Cr infusion in the first half, partly offset by profit booking of ₹1,680 Cr in the second. The Automobile sector also saw renewed interest, ending August with ₹1,803 Cr of net buying—despite a weak start marked by ₹814 Cr of outflows in the first half, FPIs turned strong buyers with ₹2,617 Cr in the latter half, underscoring confidence in India’s domestic demand story.
- Broader Domestic Bets Gain Traction: FPIs also bought into Construction Materials (₹2,475 Cr), Services (₹2,351 Cr) and Capital Goods (₹1,896 Cr), showing selective optimism, while Chemicals (₹1,571 Cr), Construction (₹1,356 Cr) and Media & Entertainment (₹165 Cr) added to diversified domestic bets.
For a comprehensive understanding and more insights, please go through our detailed report.