Financials, FMCG Take The Brunt Of FII Selling In 2025 - Where Is The Smart Money Going?

The selling by foreign institutional investors (FIIs) in Indian equities has continued unabated for the previous five to six months, with only a few brief periods of relief in between. Calendar year 2025 also saw FII selling intensifying in the very first month. However, by March, the intensity of the sell-offs seems to have slowed down as per data by National Securities Depository Limited (NSDL).

So far in 2025, FIIs have sold domestic equities worth Rs 1.44 lakh crore, of which the majority Rs 78,027 crore were sold in January. In February, FIIs sold Rs 34,574 crore worth of equities and in March, up till the 21st, FIIs exited stocks worth Rs 31,719 crore.

Which Sectors Saw The Most Selling?

As per NSDL data (up to March 15), the Financial Services sector saw the largest outflow from FIIs in 2025, with a total sale of equities worth Rs 35,251 crore. The Fast Moving Consumer Goods (FMCG) sector followed closely, with an outflow of Rs 17,438 crore, while the Auto & Auto Ancillary sector saw Rs 13,432 crore in outflows.

Other sectors also faced major selling, with IT stocks seeing Rs 12,600 crore in outflows, Capital Goods stocks at Rs 12,073 crore, Power stocks at Rs 9,151 crore, Consumer Durables stocks at Rs 7,656 crore, and Construction Material stocks at Rs 7,379 crore.

In the first half of March, selling activity by FIIs was particularly intense in IT stocks, with a massive outflow of Rs 6,934 crore. The FMCG sector followed with an outflow of Rs 5,106 crore, and the Auto & Auto Ancillary sector saw Rs 3,640 crore in outflows.

Where Are FIIs Buying?

On the buying side, the Metals sector attracted the most attention from FIIs in the first half of March, with an investment of Rs 1,179 crore. The Services sector also saw some buying, with an inflow of Rs 305 crore, while the Media & Entertainment sector had a more modest inflow of Rs 143 crore.

Since the start of 2025, the Telecommunication sector saw the highest buying of Rs 7,802 crore. It was followed by the Chemicals sector, which saw an inflow of Rs 655 crore, and Textiles, which received Rs 612 crore.