Foreign Portfolio Investors Post Significant Outflows from Indian Financial Stocks in First Half of March

Foreign Portfolio Investors (FPI) Outflows Reach ₹77,214 Crore in March 2025

FPIs have heavily dumped financial services stocks in the first half of March 2025, amid heightened global geopolitical tensions and a weakening rupee. According to data from the National Securities Depository Limited (NSDL), FPIs offloaded financial services stocks worth ₹31,831 crore between March 1 and 15. This sharp reversal follows net buying of ₹8,418 crore in the sector in February.

Overall, FPI outflows from the Indian stock market stood at ₹52,704 crore during the first fortnight of March 2025. The selling pressure intensified further, with total outflows reaching ₹77,214 crore as of March 18 – marking the highest monthly outflow since January 2025.

The financial services sector recorded the highest FPI outflows, exceeding ₹31,000 crore during March 1–15. Consequently, total FPI investment in the sector declined by 11% to ₹20,71,813 crore as on March 15, down from ₹23,26,577 crore at the end of February.

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Other sectors witnessing significant FPI outflows include:

• Automobile and Auto Components: ₹4,807 crore
• Telecommunication: ₹3,856 crore
• Construction: ₹2,975 crore
• Oil, Gas & Consumable Fuels: ₹2,932 crore
• Healthcare: ₹2,436 crore
• Fast Moving Consumer Goods (FMCG): ₹2,403 crore
• Realty: ₹2,133 crore

On the other hand, FPI inflows were primarily concentrated in the capital goods sector, which attracted investments worth ₹3,897 crore between March 1 and 15. Other sectors receiving FPI inflows include:

• Metals & Mining: ₹876 crore
• Consumer Services: ₹531 crore
• Power: ₹602 crore
• Chemicals: ₹225 crore

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The data indicates a clear sectoral shift in FPI positioning, with investors reducing exposure to rate-sensitive and consumption-linked sectors while selectively allocating capital to industrial and cyclical segments.