Foreign Institutional Investors (FIIs) play a crucial role in the Indian stock market, significantly impacting market momentum with their investment flows. Tracking FII investment trends helps investors make informed decisions and anticipate market movements. This report analyses the latest FII investment patterns from February 16 to February 28, 2025, along with sector-wise trends of Foreign Portfolio Investors (FPIs).
FII Investment Trends: February 16 - February 28, 2025
The daily FII investment data from the National Stock Exchange (NSE) for this fortnight indicates a consistent trend of outflows, with February 28, 2025, seeing the highest net outflow of ₹11,639.02 crore.
Daily FII Investment Data
Date | Buy Value (₹ Crore) | Sell Value (₹ Crore) | Net Value (₹ Crore) |
28-Feb-2025 | 39,239.44 | 50,878.46 | -11,639.02 |
27-Feb-2025 | 19,055.23 | 19,611.79 | -556.56 |
25-Feb-2025 | 12,500.37 | 16,029.47 | -3,529.10 |
24-Feb-2025 | 7,905.53 | 14,192.23 | -6,286.70 |
21-Feb-2025 | 10,144.33 | 13,593.48 | -3,449.15x |
20-Feb-2025 | 11,131.94 | 14,443.49 | -3,311.55 |
19-Feb-2025 | 11,570.57 | 13,451.87 | -1,881.30 |
18-Feb-2025 | 14,537.68 | 9,751.12 | 4,786.56 |
17-Feb-2025 | 6,826.98 | 10,764.81 | -3,937.83 |
(Source: Ace Equity)
During this period, the market experienced a net FPI outflow of ₹13,302 crore. Only four sectors attracted positive inflows, while the rest saw significant withdrawals.
- The telecom sector recorded the highest inflow for the second consecutive fortnight, attracting ₹5,661 crore.
- Automobile & Auto Components sector saw the largest FPI outflow of ₹3,279 crore, impacting industry stocks negatively.
- Financial Services Sector saw the highest continuous outflows, totaling ₹31,940 crore over four fortnights.
- FMCG Sector followed with an outflow of ₹12,332 crore, reflecting a declining investor sentiment in consumer-driven industries.
- A total of 12 sectors have faced four consecutive fortnightly FPI outflows.
The below sectors have experienced continuous outflows from FPIs over the past four fortnights, contributing to a bearish market sentiment:
- Financial Services (₹31,940 crore outflow)
- FMCG (₹12,332 crore outflow)
- Information Technology
- Metals & Mining
- Capital Goods
A comparative analysis of Foreign Portfolio Investment (FPI) sectoral investments shows that:
- Telecom recorded the highest percentage increase in FPI investments relative to its previous Assets Under Custody (AUC) of ₹2,90,820 crore.
- Construction Materials sector saw a decline of ₹1,820 crore, leading to a 1.62% drop in FPI holdings.
- IT sector’s weightage in total FPI investments declined by -0.61%.
- While financial sector outflows reached ₹1,647 crore, its relative weightage increased due to withdrawals in other sectors.
Conclusion
FII and FPI investment trends continue to influence Indian market performance. With persistent outflows in the financial and FMCG sectors and a contrasting strong inflow in telecom, investors should closely monitor upcoming trends. Market volatility could rise if outflows persist, impacting short-term and long-term investment strategies.
Key Takeaways:
FII net outflow of ₹13,302 crore recorded for Feb 16 – Feb 28, 2025.
Telecom leads inflows for the second consecutive fortnight with ₹5,661 crore.
Auto sector saw highest outflow of ₹3,279 crore.
Financial sector continues to experience significant sell-offs.
IT sector sees a drop in weightage due to FPI repositioning.
Investors should analyze these patterns while making portfolio decisions, as foreign investment trends continue to shape the market outlook for 2025
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