May 2026: FPIs Remain Equity Sellers, Debt Flows Turn Positive; DIIs & MFs Provide Strong Market Support
May 2026 Sectoral Rotation: Financials & Oil & Gas Face Heavy FPI Selling; Services and Metals & Mining See Selective Buying
Financial Services Leads the Selloff; Oil & Gas and FMCG Also Remain Under Pressure: On the selling side, Financial Services remained the biggest drag by a wide margin, witnessing outflows of ₹23,141 Cr in May 2026. Selling was heavily front-loaded, with FPIs selling ₹17,960 Cr during 1st–15th May, while outflows moderated to ₹5,181 Cr during 16th–31st May, indicating some easing in pressure during the second half.
Oil & Gas saw the second-highest selling at ₹8,978 Cr, followed by FMCG at ₹3,561 Cr and Automobile at ₹2,532 Cr. Among other sectors, Consumer Services ₹1,995 Cr, Information Technology ₹1,911 Cr, Construction Materials ₹1,641 Cr and Consumer Durables ₹1,449 Cr also witnessed outflows, indicating broad-based FPI caution across both cyclical and defensive sectors.
Services and Metals & Mining Emerge as Key Buying Pockets: FPI buying in May 2026 remained selective, with Services leading inflows at ₹7,204 Cr, largely driven by strong buying of ₹7,019 Cr in the first half of the month. Metals & Mining followed closely with inflows of ₹6,697 Cr, with buying strengthening sharply in the second half at ₹4,999 Cr, indicating renewed interest in the sector. Capital Goods also remained a preferred sector, attracting inflows of ₹2,799 Cr, mainly supported by buying of ₹2,645 Cr in the first half. Healthcare saw marginal inflows of ₹183 Cr, as second-half buying of ₹601 Cr offset first-half selling of ₹418 Cr.
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