Foreign institutional investors (FIIs) remain active in the Indian market but are selectively reallocating their positions, as demonstrated by a ₹1 lakh crore sector-wise shift during the previous six months.
According to SEBI-registered analyst Mayank Singh Chandel, FIIs had withdrawn the most from six of the 11 sectors: IT (₹33,479 crores), FMCG (₹17,819 crores), auto (₹16,058 crores), consumer services (₹14,417 crores), power (₹12,231 crores) and consumer durables (₹11,296 crores).
Chandel said that the construction and healthcare sectors, too, have been witnessing regular outflows.
He cited multiple possible triggers for these sell-offs, including expensive valuations and global uncertainties.
Poor results from export-driven sectors such as IT, and reduced demand from developed markets like the US also contributed to the outflows, explained Chandel.
But Where Is The Money Moving?
