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.