Month: November 2025

November Fortnight Review: DIIs & MFs Stay Strong as FPIs Turn Sellers Again

Strong FPI Buying Led by Telecom and Oil & Gas – FPIs turned selective buyers in early November, with Telecommunication (₹9,413 Cr) and Oil & Gas (₹2,992 Cr) driving inflows on improving sector fundamentals. Moderate interest in Capital Goods (₹788 Cr) and Realty (₹236 Cr) reflected confidence in investment and urban demand, while Diversified (₹46 Cr) and Utilities (₹8 Cr) saw modest but steady participation.

FPI Selling Concentrated in IT, Consumer Services & Healthcare – FPIs saw the sharpest outflows in Information Technology (₹4,873 Cr), followed by Consumer Services (₹2,918 Cr) and Healthcare (₹2,526 Cr) as investors trimmed defensives. Selling pressure continued in Power (₹2,512 Cr) and FMCG (₹2,042 Cr), while Financial Services (₹2,041 Cr), Consumer Durables (₹1,379 Cr) and Services (₹673 Cr) witnessed moderate profit-taking.

FPIs Turn Sellers Again in the First Half of November: Foreign Portfolio Investors (FPIs) turned net sellers in Indian equities during the first half of November 2025, reversing the buying seen in October after three months of continuous outflows. FPIs sold ₹6,092 Cr in equities, with a secondary market selloff of ₹13,925 Cr partially offset by ₹7,833 Cr of IPO purchases.

Debt Inflows Continue: FPIs also invested ₹6,398 Cr into debt during the first half of November, extending their preference for fixed-income assets amid attractive yield differentials and expectations of RBI policy easing. The steady inflows reflect a continued tilt toward stability and carry-driven opportunities.

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

Equity MFs Hit Record AUM in October: Equity mutual funds scaled a fresh peak in October, with Net AUM rising 4.41% to an all-time high of ₹35.17 lakh crore, up from ₹33.68 lakh crore in September. The broader MF industry also touched a new milestone, with Net AUM growing 2.59% to ₹79.79 lakh crore. The surge was fueled by record SIP inflows and strong market performance, underscoring sustained investor confidence.

Mutual Funds Show Strong Appetite for October IPOs: Equity mutual funds displayed healthy participation in the October IPO pipeline, selectively allocating capital to newly listed companies. Key IPO entries included LG Electronics India (155 schemes; 4.00%), Tata Capital (49 schemes; 1.04%), Lenskart Solutions (49 schemes; 1.48%), WeWork India Management (34 schemes; 12.16%), Canara HSBC Life Insurance (28 schemes; 12.05%), Canara Robeco AMC (21 schemes; 10.55%) and Rubicon Research (18 schemes; 6.41%).

Mutual Funds Add Fresh Picks Across Financials & Autos: Beyond IPOs, mutual funds broadened their equity exposure by adding established names such as The Federal Bank, Canara Bank, Shriram Finance, LTIMindtree, Hindalco Industries, TVS Motor Company and Thyrocare Technologies.

Mutual Funds Make Complete Exits Across Key Sectors: On the exit side, equity schemes realigned portfolios by fully exiting holdings in HDFC Life Insurance Company, HDB Financial Services, TCS, REC, Power Finance Corporation, Cohance Lifesciences, The Indian Hotels Company, Suzlon Energy, Lupin, Voltas, Trent, Siemens Energy India, SBI Cards and Max Healthcare Institute.

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

Modest Buying, Rising Cash Buffers – Equity MFs Turn Selective in October: Mutual Funds continued to be net buyers in equities during October, though the pace of deployment slowed sharply to ₹23,063 Cr — marking a six-month low in fresh equity investments. The cautious approach pushed overall cash holdings higher to ₹2.09 Lakh Cr, up from ₹1.99 Lakh Cr in September.

AMC Cash Ratio Dips as Equity AUM Expands: The average cash holding ratio across the top 20 Asset Management Companies edged lower to 4.54% in October, from 4.57% in September, primarily driven by a rise in equity AUM and a marginal dip from previous months. The ratio remained below the 5% mark, reflecting robust equity AUM growth and sustained investor confidence amid healthy market sentiment.

PPFAS Mutual Fund continues to hold the highest cash-to-AUM ratio among equity-oriented schemes at 22.17% (₹29,168 Cr), signaling a distinctly conservative investment posture and flexibility for future market opportunities. Quant MF follows with a substantial 11.77% (₹10,366 Cr), while ICICI & HDFC MF remains comfortably above the industry average above 6%, reflecting cautious optimism.

Parag Parikh & SBI Contra Lead in Cash Proportion: Parag Parikh Flexi Cap Fund holds the highest cash-to-AUM ratio of 22.56% (₹28,386 Cr), reflecting a distinctly conservative and flexible strategy aimed at capitalizing on future market opportunities. Close behind, SBI Contra Fund maintains 20.20% (₹9,940 Cr) in cash, signalling a cautious yet opportunistic stance amid current market uncertainties. HDFC Flexi Cap Fund, with 12.84% (₹11,692 Cr), also demonstrates a prudent approach, keeping ample liquidity for tactical deployment as valuations evolve.

Contra & Flexi Cap Funds Lead the Liquidity Charts: Contra Funds top the liquidity chart with the highest cash-to-AUM ratio of 15.19% (₹11,289 Cr), reflecting a highly defensive and opportunistic positioning amid ongoing market volatility. Flexi Cap Funds follow with 9.81% (₹52,413 Cr) held in cash, highlighting their tactical flexibility to deploy funds across market caps as opportunities arise.

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

The mutual fund industry maintained its upward momentum in October 2025, with Average Assets Under Management (AAUM) rising 2.59% to ₹79.79 lakh crore, reflecting continued investor confidence and broad-based participation.

Equity mutual fund inflows declined by 19% month-on-month to ₹24,690 crore, marking the third consecutive month of moderation, yet equity funds recorded their 56th straight month of net inflows indicating sustained investor confidence.

Large Cap funds saw the highest decline in inflows among equity categories. Hybrid funds showed a robust 51% rise in inflows.

Debt mutual funds rebounded sharply with inflows of approximately ₹1.59 lakh crore, reversing outflows seen in the previous two months, led by strong inflows into liquid funds.

Systematic Investment Plan (SIP) inflows hit a new high of ₹29,529 crore with active SIP accounts rising.

For more details read through our comprehensive Mutual Fund Flow Report for October, 2025.

October Snapshot: Selective FPI Participation and Slower MFs Deployment, DIIs Continue to Lead

October’s Sectoral Moves: FPIs Rotate Toward Financials & Energy

• Financials & Oil & Gas Lead the Buying: FPIs demonstrated clear sectoral preference in October, with the strongest inflows seen in Financial Services (₹13,279 Cr) and Oil & Gas (₹9,129 Cr). Metals & Mining (₹3,147 Cr) and Construction (₹2,233 Cr) also recorded meaningful inflows, supported by commodity cycle momentum and infrastructure project acceleration. Telecom (₹2,160 Cr) saw a sharp pickup in the second half of the month, indicating renewed confidence in tariff-led profitability improvements.
• Automobile & Power See Mixed Trends: Automobiles witnessed ₹1,560 Cr of inflows in the first half but reversed into withdrawals in the latter half, ending the month with ₹967 Cr — signaling near-term profit-taking after strong outperformance. Power turned marginally positive at ₹965 Cr, though flows moderated as valuations normalized.

Selling Concentrated in Defensives and Consumption-Oriented Sectors

• FMCG, Healthcare & Consumer Services Face Outflows: FPIs trimmed exposure heavily in FMCG (₹4,259 Cr), Healthcare (₹3,104 Cr) and Consumer Services (₹3,462 Cr) amid concerns over high valuations and moderating consumption indicators. The selling in FMCG was persistent across both halves, while Healthcare saw more aggressive unwinding early in the month. Consumer Durables (₹1,756 Cr) and Construction Materials (₹1,292 Cr) also witnessed withdrawals.
• IT Selling Eases: Information Technology continued to see selling, but the scale moderated to ₹2,194 Cr, compared to heavy liquidation in earlier months — suggesting incremental stabilization, though global IT spending outlook remains cautious. Selling in Chemicals (₹924 Cr) and Realty (₹806 Cr) remained moderate, with flows indicating position trimming rather than trend reversal.

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