7 Aug 2025 (Punjab Khabarnama Bureau): Foreign institutional investors (FIIs) turned net sellers in the Indian equity market in July, pulling out a total of $2.9 billion, with the Information Technology (IT) sector bearing the brunt of the outflows, according to a report by JM Financial Institutional Securities.
The IT sector alone witnessed FII outflows worth $2.3 billion, making it the most impacted segment for the month. This marks a sharp reversal after four consecutive months of net FII inflows into Indian equities.
Beyond IT, the Banking, Financial Services, and Insurance (BFSI) sector saw outflows of $671 million, followed by real estate ($450 million), automobiles ($412 million), oil & gas ($372 million), and consumer durables ($302 million).
Conversely, select sectors continued to attract foreign investments. Notable FII inflows were recorded in metals ($388 million), services ($347 million), fast-moving consumer goods (FMCG) ($175 million), telecom ($169 million), and chemicals ($130 million).
Despite the FII sell-off, domestic institutional investors (DIIs) remained strong buyers, injecting $7.1 billion into the market over the same period.
The Indian benchmark index Nifty 50 declined by 3% month-on-month in July, reversing its 3.1% gain in June. The report highlighted that FIIs were net buyers until July 10, accumulating $0.4 billion in purchases. However, sentiment shifted thereafter, leading to $3.2 billion in FII sell-offs in the remaining days of the month.