Foreign investors, who began purchasing Indian stocks in mid-March, allocated over 65 percent of their investments to the financial sector, according to NSDL data. FIIs' total investment in Indian equities since the second half of March is worth over Rs 26,000 crore, of which Rs 17,000 crore has been invested in financial services. However, from the beginning of 2025 until March 15, FIIs collectively offloaded over Rs 38,000 crore in financial stocks.
The recent surge in financial sector investments came ahead of the March quarter earnings season, set to begin this month. Indian banks are expected to report higher treasury income in Q4 FY25, driven by a sharp decline in government securities yields and gains from foreign exchange operations amid market volatility, according to experts. Beyond finance, FIIs sustained their investments in telecom, chemicals, and metals & mining.
Additionally, they turned buyers in healthcare, power, capital goods, and automobile sectors after a period of sustained selling. Conversely, they continued to divest from oil & gas, information technology, consumer services, and FMCG sectors. Indian markets have seen a recovery since mid-March, with the Sensex and Nifty gaining over 5% each, while the broader BSE MidCap and SmallCap indices surged more than 6.
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FIIs bet big on financials, telecom, chemicals, metals in second half of March, exit IT, FMCG & oil & gas
