FPIs Exit FMCG & Financial Services in Late Dec; IT Sees First Positive Fortnight Since June

Foreign portfolio investors (FPIs) pulled out ₹16,848 crore from Indian equities across 15 sectors in the 2nd half of December 2025.  

While FMCG and financial services bore the brunt of this exit, information technology emerged as a key gainer, attracting significant foreign inflows. 

Major FPI Outflows in FMCG and Financial Services 

During December 16–31, 2025, FPIs sold FMCG stocks worth ₹4,425 crore, intensifying their selling activity from earlier in the month when ₹1,419 crore was withdrawn.  

For the January to November period, total FPI outflows in the FMCG sector reached ₹30,942 crore. Elevated valuations and lower growth expectations contributed to reduced investor interest. 

Financial services also saw heavy selling with ₹4,009 crore withdrawn during the second half of December. The monthly outflow from this sector crossed ₹10,000 crore.  

Margin recovery in the sector being deferred to the next quarter, especially after the RBI rate cut, is seen as one of the triggers behind this move. 

IT Sector Sees First Inflows Since June 

The information technology sector recorded inflows of ₹4,457 crore during the last 15 days of December. This marked the first fortnight of net buying in the segment since June.  

Between January and November, FPIs had previously withdrawn nearly ₹76,000 crore from IT stocks. Lower valuation levels and changes in global investor preferences contributed to renewed interest. 

Read More: Foreign Investors Pull Out ₹12,667.9 Crore from G-Sec Under FAR in December 2025! 

Other Sector Movements and Overall FPI Activity 

The automobile sector faced net selling of ₹2,656 crore in the second half of the month. Profit-booking and concerns over China-dependent components were among reasons cited for this decline.  

Despite broad selloff, FPIs invested ₹12,055 crore across 9 sectors in the same period, led primarily by IT. 

Conclusion 

In late December 2025, FPIs shifted their focus by exiting heavily from FMCG and financial services while returning to IT stocks after months of outflows. Total FPI equity outflows exceeded ₹16,000 crore, highlighting continued portfolio adjustments within foreign investor segments. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or 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.