Foreign institutional investors ( FIIs) offloaded consumer-centric stocks worth Rs 9,477 crore in October, even as they poured Rs 13,279 crore into the financial space, data from ACE Equity showed. Interestingly, the selling in consumer stocks came despite the rollout of GST 2.0, a tax reform aimed at boosting consumption. While retail sales rose 8.5% during the festive season, experts warned that pent-up demand and slow income growth could temper the outlook.
Among the consumer segments, FMCG witnessed the sharpest selloff at Rs 4,259 crore, followed by consumer services at Rs 3,462 crore and consumer durables, including home appliances, at Rs 1,756 crore. Other sectors that saw notable selling included healthcare, information technology, and construction materials, with total outflows amounting to nearly Rs 6,600 crore.
On the other hand, financials emerged as the top pick for foreign investors, who bought stocks worth Rs 13,279 crore. The oil and gas sector followed with inflows exceeding Rs 9,000 crore, while metals, construction, and telecom also attracted buying worth Rs 3,147 crore, Rs 2,233 crore, and Rs 2,160 crore, respectively, ACE Equity data showed.
Part of the renewed interest in financials can be attributed to the Reserve Bank of India’s more accommodative stance on foreign ownership in banks. However, the broader takeaway points to a structural revival of global interest in India’s banking sector. In the short term, the buying also follows a phase of underperformance — concerns around slippages and rising credit costs in unsecured and micro-lending segments had triggered a sharp de-rating of bank stocks in the final quarter of FY25. The correction, however, has now created more attractive entry valuations, drawing investors back to the space.
The auto sector also witnessed modest FII inflows of Rs 967 crore in October, despite being one of the biggest beneficiaries of the GST 2.0 cut. Shares of key players like Maruti Suzuki and Eicher Motors rallied nearly 30% in a single month, reflecting the sector’s strong momentum.
Overall, October saw net FII inflows of nearly Rs 15,000 crore — a sharp turnaround after the steep correction in September 2024, marking one of the strongest monthly buying streaks this year.
According to Elara Capital, FII ownership in Indian equities remains below historical averages, with holdings in the Nifty 50 slipping from around 28% in December 2020 to roughly 25% in June 2025. Similarly, FII ownership in the Nifty 500 has declined from about 23% to 20% during the same period. Interestingly, mid-cap shareholding has been more resilient, fluctuating within a relatively narrow band of 13.5–16.3% over the past five years.
Recent data, however, suggests early signs of stabilization and a potential bottoming out in mid-cap holdings, in contrast to the continued decline in large-cap ownership. With improving earnings visibility and attractive valuations, Elara believes mid-caps are increasingly well-positioned to see renewed FII interest.
(Disclaimer: Recommendations, suggestions, views, and opinions expressed by experts are their own and do not represent the views of The Economic Times.)
Among the consumer segments, FMCG witnessed the sharpest selloff at Rs 4,259 crore, followed by consumer services at Rs 3,462 crore and consumer durables, including home appliances, at Rs 1,756 crore. Other sectors that saw notable selling included healthcare, information technology, and construction materials, with total outflows amounting to nearly Rs 6,600 crore.
Part of the renewed interest in financials can be attributed to the Reserve Bank of India’s more accommodative stance on foreign ownership in banks. However, the broader takeaway points to a structural revival of global interest in India’s banking sector. In the short term, the buying also follows a phase of underperformance — concerns around slippages and rising credit costs in unsecured and micro-lending segments had triggered a sharp de-rating of bank stocks in the final quarter of FY25. The correction, however, has now created more attractive entry valuations, drawing investors back to the space.
The auto sector also witnessed modest FII inflows of Rs 967 crore in October, despite being one of the biggest beneficiaries of the GST 2.0 cut. Shares of key players like Maruti Suzuki and Eicher Motors rallied nearly 30% in a single month, reflecting the sector’s strong momentum.
Overall, October saw net FII inflows of nearly Rs 15,000 crore — a sharp turnaround after the steep correction in September 2024, marking one of the strongest monthly buying streaks this year.
According to Elara Capital, FII ownership in Indian equities remains below historical averages, with holdings in the Nifty 50 slipping from around 28% in December 2020 to roughly 25% in June 2025. Similarly, FII ownership in the Nifty 500 has declined from about 23% to 20% during the same period. Interestingly, mid-cap shareholding has been more resilient, fluctuating within a relatively narrow band of 13.5–16.3% over the past five years.
Recent data, however, suggests early signs of stabilization and a potential bottoming out in mid-cap holdings, in contrast to the continued decline in large-cap ownership. With improving earnings visibility and attractive valuations, Elara believes mid-caps are increasingly well-positioned to see renewed FII interest.
(Disclaimer: Recommendations, suggestions, views, and opinions expressed by experts are their own and do not represent the views of The Economic Times.)
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