CALCULATE YOUR SIP RETURNS

FIIs Buying Surges Past ₹38,000 Crore with Financials at the Forefront

Written by: Team Angel OneUpdated on: May 8, 2025, 2:20 PM IST
FIIs infused over ₹38,000 crore into Indian equities in the second half of April, favouring financials, capital goods, and telecom while trimming IT and auto holdings.
FIIs Buying Surges Past ₹38,000 Crore with Financials at the Forefront
ShareShare on 1Share on 2Share on 3Share on 4Share on 5

Foreign institutional investors (FIIs) significantly ramped up their exposure to Indian equities during the second half of April, injecting over ₹38,000 crore into the markets. This marks a notable shift in sentiment compared to the more restrained flows observed in the first half of the month.

Financial Services: The Foremost Choice with ₹22,910 Crore Inflows

FIIs displayed a marked preference for financial services, investing ₹22,910 crore, accounting for more than 60% of the total inflows. The sector’s weightage in the indices, coupled with healthy credit growth and supportive macro conditions, likely bolstered this investment interest.

Capital Goods Make a Strong Comeback

After facing net outflows of ₹3,019 crore in the first half of April, the capital goods sector bounced back with net inflows of ₹2,944 crore. This reversal suggests a renewed focus on infrastructure development and industrial activity.

Telecom Sector Maintains Momentum

Telecommunications emerged as the third most preferred sector, receiving investments in excess of ₹2,500 crore, up from ₹2,137 crore in the first half. Continued digital adoption, revenue growth, and sector consolidation may have contributed to sustained investor confidence.

Oil & Gas and FMCG Draw Consistent Inflows

The oil and gas sector attracted ₹2,401 crore, driven perhaps by supportive pricing trends and energy demand. FMCG stocks followed closely, receiving ₹2,330 crore in fresh investments, likely due to their defensive appeal in a volatile environment.

Renewed Interest in Consumer, Chemicals, and Services

FIIs revisited sectors that saw selling earlier in the month. The consumer segment drew ₹1,983 crore, while chemicals attracted ₹1,184 crore. Services and consumer durables garnered ₹983 crore and ₹965 crore, respectively, indicating a broad-based recovery in investor sentiment.

IT, Auto, and Metals See Continued Selling

Despite broad inflows, FIIs reduced exposure to the IT sector with net selling of ₹1,385 crore, adding to the significant ₹13,828 crore outflow recorded in the first half of April. Auto and metal & mining sectors also witnessed net outflows of ₹645 crore and ₹574 crore, respectively.

Real Estate and Construction Remain Out of Favour

Construction and real estate stocks experienced continued selling pressure, recording outflows of ₹425 crore and ₹353 crore, respectively. These sectors appear to be under scrutiny, possibly due to concerns around execution risk and inventory levels.

Read More: FIIs Turn Net Buyers in March with ₹11,000 Crore Inflows Post Nifty Rejig.

Conclusion

The data from the second half of April reveals a distinct rotation in FII strategies—marked by strong buying in financials, capital goods, and telecom, and selling in IT and cyclical sectors. This selective allocation reflects a nuanced view of sector-specific growth prospects amid global and domestic uncertainties.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Published on: May 8, 2025, 2:20 PM IST

Team Angel One

Team Angel One is a group of experienced financial writers that deliver insightful articles on the stock market, IPO, economy, personal finance, commodities and related categories.

Know More

We're Live on WhatsApp! Join our channel for market insights & updates

Open Free Demat Account!

Join our 3 Cr+ happy customers

+91
Enjoy Zero Brokerage on Equity Delivery
4.4 Cr+DOWNLOADS
Enjoy ₹0 Account Opening Charges

Get the link to download the App

Get it on Google PlayDownload on the App Store
Open Free Demat Account!
Join our 3 Cr+ happy customers