Foreign investors dump Indian equities as IT sector draws lone inflows
Foreign portfolio investors sold nearly ₹48,000 crore of Indian stocks in early October, while only the IT sector recorded new buying.
Data from the National Securities Depository show that foreign portfolio investors sold shares totaling nearly ₹48,000 crore during the first half of October, exceeding the outflows of the prior fortnight by more than twofold. Financial services recorded the largest net outflow, while sectors such as FMCG, automotive and healthcare experienced accelerating sales. Among 24 tracked sectors, only five saw net buying, with IT emerging as the only clear winner, drawing fresh inflows and boosting the overall value of FPI holdings despite a modest 0.3% decline in total equity positions.
The IT segment’s gains were supported by a strong performance of the Nifty IT index, which outpaced the broader market. Analysts noted that the pattern reflects a risk-off stance among foreign investors, with selective buying limited to technology stocks.
Why it matters
The shift signals heightened caution among foreign investors, affecting capital flows and market sentiment in India.
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