Foreign Institutional Investors (FIIs) reshaped their portfolios in 2025, selling heavily in IT, FMCG, and power stocks, while increasing exposure to telecom, oil & gas, and services sectors.
The IT sector witnessed the largest outflows, accounting for over 45% of total FII withdrawals during the year, reflecting concerns over slowing global demand and softening earnings. FMCG and power stocks also faced selling pressure, albeit to a lesser extent.
Conversely, FIIs added positions in telecom, oil & gas, and service-related companies, attracted by valuation opportunities, stable cash flows, and sectoral growth prospects. Analysts note that this rotation highlights FII preference for defensive and growth-oriented sectors amid global uncertainties.
This trend is expected to influence sectoral performance in 2026, with IT and FMCG under pressure and oil, gas, and telecom likely to see continued inflows.
