February 2026: FPIs Turn Equity Buyers, Debt Flows Stay Strong; DIIs Support the Market as MF Buying Hits a Three-Year Low
February 2026 Sectoral Rotation: FPIs Lean Into Capex and Domestic Cyclicals; IT Remains the Biggest Drag
Capex, Industrials and Domestic Cyclicals Lead the Buying Trend: FPI buying in February 2026 remained focused on capex-led and domestic cyclical sectors. Capital Goods was the top pick at ₹12,135 Cr, with flows stronger in the first half (₹8,032 Cr) than the second (₹4,103 Cr). Financial Services followed at ₹8,418 Cr, again front-loaded (₹6,175 Cr vs ₹2,243 Cr). Metals & Mining (₹5,638 Cr), Oil & Gas (₹5,381 Cr) and Power (₹4,506 Cr) also saw healthy inflows. Construction recorded ₹4,487 Cr, with buying rising in the second half to ₹2,742 Cr from ₹1,745 Cr, while Automobile saw a sharp late-month pickup with ₹3,075 Cr in the second half versus ₹511 Cr in the first, indicating stronger interest in domestic demand-linked themes.
Technology Outflows Dominate While Consumption Sees Late-Month Pressure
On the selling side, Information Technology remained the clear laggard, recording the deepest outflows of ₹16,949 Cr, with heavy selling in both halves of the month (₹10,956 Cr in the first and ₹5,993 Cr in the second). Consumer Services also saw a sharp reversal, moving from ₹1,066 Cr of buying in the first half to ₹5,238 Cr of selling in the second, ending the month with net outflows of ₹4,172 Cr. FMCG (₹1,951 Cr) and Telecommunication (₹1,881 Cr) remained under pressure, while Consumer Durables (₹756 Cr) and Textiles (₹100 Cr) also stayed net sold. Healthcare was relatively mixed, with first-half selling of ₹1,051 Cr partly offset by second-half buying of ₹722 Cr, resulting in a modest net outflow of ₹329 Cr. Utilities remained largely flat with negligible net selling of ₹6 Cr.
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