FII Data Reveals Significant Shifts in Sector Allocations for March 16-31, 2025

Foreign Portfolio Investors (FPIs) pumped in ₹26,042 crore during the second half of March 2025, with banking and financial services emerging as the clear favorites while energy sectors faced continued selling pressure.

Where FII Money Flowed in Late March 2025

The latest FII data shows that foreign investors maintained their bullish stance on India's financial sector, channeling ₹17,585 crore into banking and financial services stocks from March 16 to 31. Despite global economic uncertainties, this substantial inflow underscores continued foreign investor confidence in India's financial ecosystem.

Meanwhile, the oil, gas & consumable fuels sector experienced the most significant outflow, with FIIs withdrawing ₹2,449 crore during the same period. This marks the fourth consecutive fortnight of foreign investors reducing their exposure to energy stocks.

Sectors Facing Persistent FII Selling Pressure

Analysis of FII data over the past four fortnights reveals consistent selling patterns in several key sectors:

• The FMCG sector witnessed the heaviest sustained selling, with cumulative outflows of ₹12,497 crore across the last four fortnights.
• Oil, gas & consumable fuels followed with total outflows of ₹6,796 crore during the same period
• Four sectors have now recorded FII outflows for four consecutive fortnights, signaling a potentially strategic realignment in foreign investment portfolios

Media Stocks Attract Highest Proportional FII Interest

When examining FII data relative to existing Assets Under Custody (AUC), the media sector has the highest percentage inflow. With the previous AUC at ₹10,715 crore, fresh investments of ₹303 crore represent a significant proportional increase that could drive positive momentum in media stocks.

In contrast, despite its substantial AUC of ₹4,53,365 crore, the oil & gas sector saw outflows of ₹2,449 crore, resulting in a 0.54% reduction in FII holdings.

Shifting Sector Weightages in FII Portfolios

The latest FII data also highlights notable shifts in sector allocation:

• Information Technology experienced a 0.50% decline in its share of total FII investments, marking its second consecutive significant weightage drop.
• The financial sector further consolidated its position as the top destination for FII inflows, increasing its overall weightage in foreign portfolios.

This rebalancing in FII allocations provides valuable signals for domestic investors tracking institutional money flows as potential sector performance indicators in the coming months.

For investors following FII data as part of their market analysis, these sectoral trends highlight potential opportunities in financial and media stocks. Meanwhile, caution may be warranted in FMCG and energy sectors facing foreign investor selling pressure.