FPIs Net Sell Rs 48,000-Crore Equities In January — Financials, Power Sectors Lead Outflows

Foreign portfolio investors have resumed their selling spree after turning net buyers of equities last month. The FPIs have net sold stocks worth Rs 48,000 crore in January so far, as compared to a net mop-up of Rs 15,446 crore in December 2024, according to data shared by the National Securities Depository Ltd.

The selling was seen in most of the key sectors and was likely driven by global factors, including geopolitical uncertainties and the expectation of a stronger dollar and higher bond yields with the onset of Donald Trump's presidency in the United States, say analysts.

The exit of FPI also comes amid the concern expressed over Indian corporate earnings. The preceding September quarter had witnessed muted earnings growth, as consumption slowed in urban India.

Amongst the most hit by FPI outflows was the financial sector, where overseas investors net offloaded equities worth Rs 12,204 crore in the first fortnight of January, as per the NSDL data. This marked a reversal from the inflow of Rs 3,086 crore recorded last month.

Sectors that form part of core industries also logged significant net outflows between Jan. 1 and Jan. 15. The FPIs offloaded stocks worth Rs 3,115 crore in the power sector, pulled out Rs 2,620 crore from the capital goods sector, and net sold equities worth Rs 1,997 crore in the metals and mining sector during the same period.

The information technology sector, a keenly tracked sector, logged net outflows of Rs 1,927 crore during the first fortnight of this month. Similarly, oil, gas and consumable fuels witnessed selling of Rs 1,460 crore.

The construction sector recorded net outflows of Rs 1,623 crore, whereas realty witnessed selling to the tune of Rs 608 crore, the NSDL data showed.

Amid the cloud over urban consumption, sectors like automobiles and fast-moving consumer goods also logged outflows. FPIs pulled out Rs 1,134 crore from FMCG and Rs 931 crore from consumer durables sectors between Jan. 1 and Jan. 15. They also net sold equities worth Rs 1,924 crore in the automobile and auto components sector.

Meanwhile, the healthcare sector recorded net outflows of Rs 1,460 crore during the same period, the NSDL data showed.