Foreign Institutional Investors (FIIs) maintained their bullish stance on Indian equities during the first half of May 2025, making substantial investments across key sectors such as financial services and capital goods. FIIs infused more than Rs. 12,800 crores into Indian equities during this period, reflecting sustained confidence in the market’s growth potential.
However, the FII investment of Rs. 12,873 crores in the first half of May marked a decline of about 66 percent compared to Rs. 38,150 crores recorded in the latter half of April.
Between May 1st and 15th, FIIs recorded significant buying activity across 13 sectors, including Financial Services, Capital Goods, Oil & Gas, Services, Automobiles & Auto Components, Consumer Services, Telecommunications, Chemicals, Information Technology, Construction Materials, Metals & Mining, Media, Entertainment & Publishing, and Utilities.
Following are the top five sectors that witnessed the highest FII investment activity between May 1st to 15th:
Financial Services Sector
Among the top sectors, financial services attracted the highest inflow, with foreign investors purchasing Rs. 4,728 crores worth of stocks, building on an even more robust investment of Rs. 22,910 crores in the latter half of April. Despite these inflows, the sector has witnessed total outflows amounting to Rs. 58,280 crores so far in 2024.
Notable stocks in this sector include Bajaj Finance, Bajaj Finserv, Jio Financial, Indian Railway Finance Corporation (IRFC), Power Finance, Shriram Finance, and Muthoot Finance.
Capital Goods Sector
The capital goods sector also continued to draw strong FII interest, ranking as the second most purchased sector in the first half of May. FIIs invested Rs. 2,233 crores in the sector during this period, following an inflow of Rs. 2,944 crores in the previous fortnight. Key stocks in the Capital Goods sector include Thermax, SKF India, Hindustan Aeronautics, ABB India, Bharat Electronics, and Bharat Heavy Electricals Limited.
Oil, Gas & Consumable Fuels Sector
The oil & gas sector ranked as the third most attractive segment for foreign investment in early May, with FIIs infusing Rs. 2,130 crores. This follows an investment of Rs. 2,401 crores in the latter half of April, reflecting sustained interest in the sector. Prominent stocks that are in focus include Reliance Industries, ONGC, GAIL, Oil India, IOCL, Petronet LNG, HPCL, BPCL, and Indraprastha Gas, among others.
Services Sector
The services sector attracted FII inflows worth Rs. 1,762 crores in the first half of May, following a buying of Rs. 983 crores during the second half of April—indicating rising foreign interest in service-driven businesses.
The Nifty Services Sector Index comprises a diverse mix of industries, such as software, IT education and training, banking, telecommunication services, financial institutions, power, media, courier, and shipping.
Key stocks in this sector include Max Healthcare Institute, Tata Consultancy Services (TCS), Bharti Airtel, HCL Technologies, Infosys, Jio Finance, SBI Life Insurance, Wipro, HDFC Life Insurance, and others.
Automobile and Auto Components Sector
The automobile sector witnessed a notable shift in foreign investor sentiment. After facing significant FII outflows of Rs. 645 crores in the latter half of April, the sector saw a turnaround, with foreign investors becoming net buyers and infusing Rs. 1,610 crores in the first half of May.
Prominent stocks in the automobile and auto components space that came into focus following this renewed interest include Maruti Suzuki, Bajaj Auto, Tata Motors, UNO Minda, Automotive Axles, and Banco Products, among others.
Sectors Facing FII Selling Pressure
Conversely, several sectors came under selling pressure in early May. The FMCG sector saw FIIs offloading stocks worth Rs. 1,057 crores, marking a reversal from their bullish stance in April, when they had invested Rs. 2,917 crores.
Persistent selling was also evident in other sectors, including real estate (Rs. 842 crores), healthcare (Rs. 606 crores), and construction (Rs. 190 crores). This continued the trend from April, when these sectors witnessed sell-offs of Rs. 713 crores, Rs. 728 crores, and Rs. 2,886 crores, respectively. Additionally, the power sector experienced intensified selling, with FIIs offloading more than Rs. 720 crores—sharply up from Rs. 61 crores in the previous month.
Written by Shivani Singh
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