FPI Fortnightly Sectoral Analysis: Financials, Telecom in Focus (Feb 1-15, 2025)

Foreign Portfolio Investors (FPIs) play a crucial role in influencing Indian stock market trends. Understanding FPI fund movements across sectors can provide valuable insights for investors in their analysis. The article below presents a detailed analysis of FPI fortnightly sectoral data.

FPI Investments Update: Financial services Lead Outflows, Telecom Tops Inflow

The sectors in the chart reflect the highest and lowest FPI investment flows during the fortnight from February 1 to February 15, 2025. The market saw a net FPI outflow of Rs 21,272 crore during this period. The financial services sector recorded the highest outflow of Rs 5,344 crore, maintaining its position as the sector with the highest outflow similar to the previous fortnight (January 16 to January 31, 2025). In contrast, the telecom sector led in inflows, attracting Rs 2,337 crore.

FPI Exodus: Financial & FMCG Leads the Consecutive Four-Fortnight Outflows

The sectors shown in the chart have experienced consistent outflows of Foreign Portfolio Investor (FPI) funds over the past 4 consecutive fortnights.

Seven sectors experienced consistent outflows for four consecutive fortnights, reflecting the bearish stance of FPIs. The Financial sector has been under significant bearish pressure from FPIs over the past few months, recording the highest outflow of Rs 34,631 crore in the last four fortnights, followed by the FMCG sector with an outflow of Rs 10,898 cr.

FPI Trend: Telecom Gains Momentum, Construction Materials See Drawdown

The above chart illustrates the highest and lowest percentages of Foreign Portfolio Investors (FPI) sectoral investments for the latest 1^st February 2025 to 15^th February 2025 fortnight compared to its previous fortnightly Asset Under Custody (AUC). The ratio between the current investment flow and the previous AUC shows FPI interest in different sectors. This helps investors see which sectoral stocks might perform well in the near term.

The data indicates that the telecom sector recorded the highest percentage inflow of Foreign Portfolio Investment (FPI) relative to its previous Assets Under Custody (AUC), which could drive a positive momentum in telecom stocks. Previously, the sector had an AUC of ₹2,78,276 crore, and in the latest fortnight, it attracted fresh investments of ₹2,337 crore. Conversely, the construction materials sector experienced an outflow of ₹2,024 crore, leading to a 1.74% reduction in FPI holdings from its prior AUC of ₹1,16,187 crore.

Capital Goods Sees Weightage Drop as FPI Shifts Continue

Here’s the list of sectors that experienced a shift in their weightage to the total FPI investment in the latest 1^st February 2025 to 15^th February 2025 fortnight compared to the previous fortnight.

While the financial sector recorded the highest outflows, significant withdrawals across other sectors led to an overall increase in its weightage. In contrast, the capital goods sector saw a decline in its share, dropping by -0.45%.