FIIs Pull ₹1 Lakh Cr From Indian Stocks: SEBI RA Tracks Smart Money Moving From Export Sectors To Domestic Plays

Foreign institutional investors (FIIs) remain active in the Indian market but are selectively reallocating their positions, as demonstrated by a ₹1 lakh crore sector-wise shift during the previous six months.

According to SEBI-registered analyst Mayank Singh Chandel, FIIs had withdrawn the most from six of the 11 sectors: IT (₹33,479 crores), FMCG (₹17,819 crores), auto (₹16,058 crores), consumer services (₹14,417 crores), power (₹12,231 crores) and consumer durables (₹11,296 crores).

Chandel said that the construction and healthcare sectors, too, have been witnessing regular outflows.

He cited multiple possible triggers for these sell-offs, including expensive valuations and global uncertainties.

Poor results from export-driven sectors such as IT, and reduced demand from developed markets like the US also contributed to the outflows, explained Chandel.

But Where Is The Money Moving?

Chandel said that FIIs have kept their investments active in sectors like telecom with investments worth ₹23,065 crore and financials, with ₹9,456 crore inflows. FIIs are also allocating funds to services and chemicals.

He added that the ongoing FII repositioning reflects caution and a focus on quality rather than an outright exit.

Chandel said that long-term investors may find this a good opportunity to reassess and rebalance portfolios.

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