Foreign portfolio inflows into Indian equities have been negative since the beginning of 2025. As of mid-February, Foreign Institutional Investors (FIIs) have net sold Indian equities worth Rs 33,527.55 crores. Between February 1 and February 15, their net sales amounted to Rs 26,610 crores, spread across 16 sectors, according to data from NSDL.
The financial sector saw the highest sell-offs from FIIs due to concerns over the potential rise in non-performing assets (NPAs) or bad loans.
On the other hand, the three sectors where FIIs made notable purchases are Healthcare, Information Technology (IT), and Telecommunications, during the initial 15 days of February.
The ongoing FII outflows, coupled with valuation corrections, create a challenging yet potentially rewarding environment for selective investors.
Following are the sectors where FIIs have shown interest and invested between February 1st and 15th:
1. Telecommunications Sector
FIIs have shown strong interest in the telecom sector. After a modest purchase of Rs. 144 crores in January, the sector saw a significant inflow of Rs. 2,337 crores, mainly driven by block deals in Bharti Airtel.
Here are two telecom stocks in focus after the FII buying spree:
Bharti Airtel Limited
On February 18, the promoter entity of Bharti Airtel, Indian Continent Investment, sold a stake worth Rs. 8,475 crore in the telecom giant. According to a company statement, the promoter entity sold a 0.84 percent stake, with 1.20 crore of those shares being acquired by Bharti Telecom, another promoter of the telecom operator. The company stated that the shares were allocated exclusively to key long-only investors, both domestic and global.
Indus Towers Limited
With a market cap of Rs. 88,748 crores, the shares of Indus Towers surged 2.4 percent on BSE to Rs. 339.25 on Thursday. The company’s price-to-earnings (P/E) ratio stands at 9, which is significantly lower than the industry’s P/E ratio of 17.
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2. Healthcare Sector
The healthcare sector ranks as the second most purchased sector by FIIs, so far in February. In contrast to the previous outflow of Rs. 4,372 crores in January, the sector has seen FII investments totaling Rs. 1,534 crores, as global investors shifted to a defensive strategy, prioritizing stable earnings and robust global demand.
Here are two healthcare stocks in focus after the FII buying spree:
Dr Reddy’s Laboratories Limited
With a market cap of Rs. 93,870.6 crores, the shares of Dr Reddys Lab surged 2.4 percent on BSE to Rs. 1,136.15 on Thursday. The company’s price-to-earnings (P/E) ratio is 17.5, compared to the industry average of 29.4.
Cipla Limited
With a market cap of Rs. 1.16 lakh crores, the shares of Cipla slumped nearly 2 percent on BSE to Rs. 1,436.5 on Thursday. Its price-to-earnings (P/E) ratio stands at 23.4, compared to the industry’s P/E ratio of 29.4.
3. Information Technology Sector
Sentiment in the IT sector has improved with the return of FII buying. After witnessing a significant outflow of Rs. 6,471 crore, the sector saw FII investments of Rs. 693 crore this month, reflecting defensive buying amid global uncertainty.
Here are two Information Technology (IT) stocks in focus after the FII buying spree:
HCL Technologies Limited
With a market cap of Rs. 4.41 lakh crores, the shares of HCL Technologies surged 1.2 percent on BSE to Rs. 1,655.95 on Thursday. Its price-to-earnings (P/E) ratio stands at 25.8, compared to the industry’s P/E ratio of 29.1.
Tata Consultancy Services Limited
With a market cap of Rs. 13.07 lakh crores, the shares of TCS surged 0.2 percent on BSE to Rs. 3,637.95 on Thursday. Its price-to-earnings (P/E) ratio stands at 26.8, compared to the industry’s P/E ratio of 29.1.
Written by Shivani Singh
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