September Fortnight Review: DIIs and MFs Lead Buying Against FPI Exit Pressure
FPI Selling Concentrated in Consumer & Power – FPIs executed sharp exits from Consumer Services (₹3,246 Cr) and Power (₹2,107 Cr), followed closely by Information Technology (₹2,014 Cr) and Realty (₹1,927 Cr). Additional pressure came from Healthcare (₹1,601 Cr), Telecommunication (₹1,505 Cr) and Oil & Gas (₹1,502 Cr), while moderate selling was seen in Construction Materials (₹1,193 Cr). The selling pattern highlights a clear retreat from consumption-heavy and defensives.
FPI Buying Anchored in Autos, Financials & Capital Goods – On the buying side, FPIs favored cyclical and growth-linked sectors, led by Automobile & Auto Components (₹1,908 Cr), Financial Services (₹1,634 Cr) and Capital Goods (₹1,518 Cr). Strong inflows also went into Metals & Mining (₹1,394 Cr), while modest accumulation was noted in Services (₹236 Cr), Construction (₹130 Cr) and Chemicals (₹23 Cr). The trend reflects a preference for sectors aligned with India’s domestic growth momentum and infrastructure cycle.
FPIs Extend Equity Selloff in September: Foreign Portfolio Investors (FPIs) continued exiting Indian equities in the first half of September, extending the selloff seen in July and August. However, the pace of outflows has moderated, with net withdrawals of ₹9,759 Cr so far this month, led by ₹10,175 Cr in secondary market selling, partly offset by ₹416 Cr in IPOs. If the trend persists, September will mark the sixth month of equity outflows in 2025, highlighting sustained caution among global investors.
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