FPIs dump IT, FMCG, Auto stocks the most in March; Metals, Media sectors see buying | Stock Market News

Foreign Portfolio Investors (FPIs) continued their selling streak in the Indian equity markets for the third consecutive month in March 2025. Following net outflows of ₹78,027 crore in January and ₹34,574 crore in February, FPIs offloaded Indian equities worth ₹30,015 crore in the first half of March, according to data from the National Securities Depository Limited (NSDL).

As of March 20, 2025, the total FPI outflow for the month stood at ₹34,901 crore, bringing the cumulative net sell-off to ₹1,47,502 crore in 2025 so far. The sustained outflows have contributed to a broader market sell-off, exacerbated by rising US Treasury yields, a strengthening US dollar, and global economic uncertainties, prompting investors to reallocate capital towards US assets.

In the first half of March 2025, FPIs offloaded shares across major sectors, including Information Technology (IT), Fast Moving Consumer Goods (FMCG), and Automobile & Auto Components, according to data from NSDL. While most sectors saw outflows, Metals & Mining emerged as the biggest beneficiary of FPI inflows.

“The FPI outflows from India have been mainly going into Chinese stocks which have been outperforming other markets in 2025. The recent decline in the dollar index will limit the fund flows to the US. However, the heightened uncertainty triggered by the trade war between the US and other nations is likely to push more money into safe asset classes like gold and dollar,” said V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.

Heavy Selling in IT, FMCG, and Auto Sectors

The IT sector bore the brunt of FPIs sell-off, recording net outflows of ₹6,934 crore during the first half of March 2025. The FMCG sector followed, witnessing net outflows of ₹5,106 crore, while the Automobile & Auto Components sector faced significant selling pressure, with FPIs withdrawing ₹3,640 crore, NSDL data showed.

Financial Services also saw continued selling, with net outflows amounting to ₹3,311 crore during the first fortnight of March. Other sectors that experienced notable FPI exits included Healthcare ( ₹2,049 crore), Capital Goods ( ₹1,912 crore), Consumer Services ( ₹1,900 crore), and Power ( ₹1,867 crore).

Additionally, the Consumer Durables and Construction Materials sectors recorded net outflows of ₹1,566 crore and ₹1,465 crore, respectively, during the same period.

Selective FPI Buying in Metals & Mining

Amid widespread selling, select sectors attracted FPI interest. The Metals & Mining sector emerged as the biggest beneficiary of FPI inflows, receiving a net investment of ₹1,179 crore, likely driven by strong global demand for commodities and rising metal prices, accoridng to the data from NSDL.

The Services sector also saw net inflows of ₹305 crore, while the Media, Entertainment & Publication sector attracted ₹143 crore in FPI investments, reflecting continued investor confidence in India’s consumption-driven growth trajectory.

The net outflows across major sectors suggest a cautious stance among FPIs, driven by global economic uncertainties and domestic valuation concerns. The trend also highlights a sectoral rotation, with investors moving away from traditionally strong segments like IT and Financial Services in favor of commodity-driven and service-oriented industries.

Going forward, market movements will depend on global liquidity conditions, Trade and tariff policies of US President Donald Trump, US Federal Reserve’s policy actions, and domestic macroeconomic factors.

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