FPI Heatmap: Financials, IT, Oil & Gas see sharpest sell-off in August; Telecom, Construction attract inflows
Cumulatively, FPIs have withdrawn ₹ 1,16,822 crore from Indian equities so far in 2025, underscoring sustained caution amid global and domestic headwinds.
The sharp FPI outflows are being attributed to escalating US–India trade tensions after President Donald Trump imposed a 50% tariffs on Indian goods. However, India's recent S&P credit rating upgrade, the prospect of trade negotiations in the coming weeks and the proposed GST reforms may help ease investor concerns.
According to NSDL data, FPIs sold Indian stocks worth ₹ 20,976 crore in just the first fortnight of August, with the bulk of the outflows concentrated in Financial Services, IT, and Oil & Gas, while select sectors such as Telecom and Construction attracted inflows.
Financial Services bore the sharpest brunt of FPI selling, with net outflows of ₹ 13,471 crore in the first fortnight of August. It was followed by the Information Technology (IT) sector which recorded outflows of ₹ 6,380 crore, extending July's trend of heavy selling.
Oil & Gas witnessed net selling of ₹ 4,091 crore. Power stocks saw FPI outflows of ₹ 2,358 crore, while Healthcare recorded selling worth ₹ 2,095 crore.
Defensive sectors such as FMCG ( ₹ 1,150 crore outflow), Consumer Durables ( ₹ 1,133 crore outflow), and Realty ( ₹ 1,211 crore outflow) also witnessed selling, reflecting broad-based FPI caution across consumption-oriented themes.
Telecom emerged as the standout sector during August 1 to 15, attracting ₹ 7,446 crore in net inflows. Strong earnings visibility, 5G rollout momentum, and balance sheet deleveraging appear to have drawn foreign investor interest.
The Construction ( ₹ 1,378 crore inflows) and Construction Materials ( ₹ 1,690 crore inflows) sectors attracted healthy FPI buying, reflecting optimism around government-led infrastructure spending and housing demand.
Capital Goods stocks saw inflows of ₹ 1,132 crore, while Metals & Mining sector recorded inflows worth ₹ 606 crore, and Chemicals sector also witnessed positive inflows worth ₹ 410 crore.
The August data underscores a sharp divergence in FPI flows—while large-cap heavyweights like Financial Services, IT, and Oil & Gas faced aggressive selling, select cyclicals such as Telecom, Capital Goods, and Construction attracted fresh money.
This indicates a sectoral rotation strategy, with FPIs trimming positions in over-owned, high-valuation sectors and selectively adding exposure to areas with structural growth potential.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
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