FIIs Pull Out ₹13,000 Crore from Key Sectors: IT Stocks Bear the Brunt

Foreign institutional investors (FIIs) withdrew over ₹13,000 crore from five major sectors during the first half of February, with the IT segment hit hardest amid ongoing concerns over AI-driven disruption.

Data from Moneycontrol shows that FIIs exited ₹10,956 crore from IT stocks between February 1-15, a sharp reversal from the modest net inflow of ₹240 crore recorded in the preceding fortnight.

Outflow from IT Shares

The outflows weighed heavily on IT shares, with the Nifty IT index plummeting 14% so far this month. Among the major players, Infosys slid 16.5%, TCS fell 14%, and HCL Technologies declined 14.2%. Tech Mahindra dropped 12%, while Wipro and Persistent Systems each lost around 10%.

According to NSDL data, total FII holdings in IT shares fell to a four-year low of ₹4.49 lakh crore as of February 15, down 16% from ₹5.34 lakh crore at the end of January 2026.

Other sectors also experienced outflows, though to a lesser extent. FMCG stocks saw a net withdrawal of ₹1,182 crore, healthcare ₹1,051 crore, consumer durables ₹434 crore, and telecom ₹106 crore.

Capital Goods, Financial Services, and Oil & Gas See FII Inflows

On the flip side, sectors such as capital goods, financial services, oil & gas, metals and mining, power, and construction attracted significant FII investments totaling ₹31,850 crore during the fortnight ending February 15.

The capital goods sector led the gains, drawing ₹8,032 crore in FII inflows in the first half of February, up sharply from ₹2,435 crore in the second half of January.

Financial services attracted ₹6,175 crore, reversing outflows of ₹5,402 crore in the previous fortnight, while oil and gas stocks saw net buying of ₹4,678 crore, compared with outflows of ₹391 crore in late January.

Metals and mining recorded inflows of ₹3,279 crore during the first half, following purchases of over ₹11,526 crore in January. Power and construction sectors also witnessed strong buying, with FII inflows of ₹3,272 crore and ₹1,745 crore, respectively, reversing the January trend of net sales.

Other sectors, such as services and consumer services, saw moderate inflows of ₹1,286 crore and ₹1,066 crore, respectively.

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.