FPIs Extend IT Sell-Off, Telecommunication Sees Highest Inflow In First Half Of November

Foreign portfolio investors pulled $518 million from information technology during the first half of November, according to data released by National Securities Depositories Ltd. on Friday. This was also the largest sectoral outflow in the period, according to data compiled by NDTV Profit via NSDL.

The sector has witnessed foreign selling for the ninth consecutive fortnight. Foreign investors have offloaded $8,572 million in this sector since January 2025.

That came as the total FPI inflow stood at $52 million, while the benchmark Nifty 50 rose 0.73% during the period. This will mark the third consecutive fortnight of inflow of funds after nearly three months of outflow.

The IT selloff was followed by outflows of $329 million from consumer service, $285 million from healthcare, and $280 million from power.

On the flip side, telecommunication saw the highest FPI equity inflow from Nov 1-15, totalling $1,061 million. The Sovereign debt fund followed with $454 million in net inflows, while oil gas and consumable fuels drew $337 million and capital goods received $88 million.

While IT has seen an outflow for nearly five months analysts believe the sector is entering a rare and promising sweet spot, where currency support, attractive valuations and improving sector sentiment are beginning to converge after a prolonged phase of underperformance.

Despite global tech spending remaining somewhat cautious, the broader Indian market has recovered strongly, leaving IT behind long enough for it to start looking meaningfully undervalued.

With the rupee weakening to record lows, AI-led services demand gradually taking shape and commentary from sector leaders turning more constructive, the foundations for a revival are steadily strengthening.