September Snapshot: FPIs Extend Equity Selloff, While DIIs and MFs Lead with Robust Inflows Across Equities
September’s Sectoral Moves: FPIs Dump IT & Healthcare
- IT & Healthcare Lead the Sell-Off: Foreign Portfolio Investors (FPIs) continued their sectoral reshuffling in September, aggressively trimming positions in Information Technology (₹6,050 Cr) and Healthcare (₹6,122 Cr) — the two worst-hit sectors of the month. Selling in IT was broad-based, with ₹2,014 Cr offloaded in the first half and ₹4,036 Cr in the second, as global tech valuations remained under pressure. Healthcare mirrored this trend, witnessing ₹1,601 Cr of sales early in the month and ₹4,521 Cr later after Trump’s pharma tariff.
- Consumer and Realty Stocks See Continued Outflows: FPIs also pared exposure in FMCG (₹4,202 Cr), Consumer Durables (₹3,627 Cr) and Consumer Services (₹3,360 Cr) amid concerns over stretched valuations and moderating consumption trends. Sectors like Power (₹2,693 Cr), Telecommunication (₹2,422 Cr) and Realty (₹2,259 Cr) too witnessed steady selling.
Selective Buying in Domestic Plays: FPIs Rotate into Automobiles and Capital Goods
- Automobiles and Capital Goods Emerge as Bright Spots: Amid the widespread selloff, FPIs selectively turned buyers in domestic-oriented sectors. The Automobile sector led with net inflows of ₹3,641 Cr, supported by sustained demand momentum and robust festival season outlook. Capital Goods followed closely with ₹3,010 Cr of net buying, driven by renewed optimism in infrastructure spending and corporate capex recovery.
- Metals, Financials & Construction Attract Interest: FPIs also added to positions in Metals & Mining (₹1,840 Cr), Financial Services (₹992 Cr) and Construction (₹856 Cr), signaling selective re-entry into cyclical and growth-linked sectors. Even Media & Entertainment (₹77 Cr) turned positive during the month.
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