IT, FMCG and Power Led FPI Sell-off in 2025 with Record Outflows

Foreign Portfolio Investors (FPIs) were net sellers of Indian equities worth ₹1.7 trillion in 2025, making it the highest annual outflow on record.  

As per news reports, the year saw persistent pressure on foreign inflows amid weak earnings delivery in some sectors and continued uncertainty linked to global trade developments. 

IT Sector Leads the Outflows 

The information technology (IT) sector recorded the largest FPI selling during the year. FPIs sold IT stocks worth ₹74,698 crore in net terms.  

Revenue growth for IT companies in dollar terms remained in single digits, following a high base over the past few years, limiting fresh buying interest. 

FMCG and Power Also See Heavy Exits 

The fast-moving consumer goods (FMCG) sector saw net FPI outflows of ₹36,786 crore in 2025. Slower volume growth and rising competition from private labels and smaller online players weighed on the sector.  

The power sector also witnessed significant selling, with FPIs pulling out ₹26,522 crore, largely after a period of sharp valuation expansion. 

Selling Across Sectors 

Other sectors that saw notable FPI outflows included healthcare, where net sales stood at ₹24,967 crore, followed by consumer durables at ₹21,369 crore and consumer services at ₹16,524 crore.  

Selling was spread across both consumption-focused and defensive segments of the market. 

Telecom and Oil & Gas Attract Buying 

In contrast, FPIs were net buyers in a few sectors. Telecommunications stocks saw inflows of ₹48,222 crore, supported by increased share supply after promoter stake sales in companies such as Bharti Airtel and improved revenue visibility following tariff hikes. 

Oil and gas stocks recorded net buying of ₹8,431 crore. Smaller inflows were also seen in services, chemicals, and metals and mining. 

Portfolio Allocation and Market Performance 

By the end of 2025, FPIs had their highest sectoral exposure to financial services at 31.8%, followed by oil and gas at 7.7% and automobiles at 7.6%.  

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

Conclusion 

FPI activity in 2025 was marked by heavy selling in IT, FMCG and power stocks, alongside selective buying in telecom and energy-related sectors, showing a cautious and sector-specific investment approach. 

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.   
 
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