Foreign institutional investors (FIIs) withdrew the most money from India's IT sector in July, totaling $2.3 billion, according to a report released on Thursday.
According to JM Financial Institutional Securities, FIIs sold $2.9 billion in the Indian equity market in July, while DIIs bought $7.1 billion.
Key Highlights
- FIIs withdrew a substantial $4.17 billion from five major Indian sectors in July, with IT hit hardest.
- The IT sector alone saw over ₹19,901 crore (~$2 billion) in FII outflows during July, strongest sectoral exit.
IT had the highest FII outflows, totaling $2.3 billion, followed by the BSFI sector, which received $671 million. Real estate ($450 million), automobiles ($412 million), oil and gas ($372 million), and durable goods ($302 million) all saw significant outflows.
Metals ($388 million), services ($347 million), FMCG ($175 million), telecom ($169 million), and chemicals ($130 million) were the top five FII inflows.
Indian Benchmark Index The Nifty fell 3% month on month, following a 3.1% rise in June 2025. After four months of net buying, FIIs began to sell. Until July 10, FIIs were net buyers, purchasing equities worth $0.4 billion, before turning net sellers and offloading equities worth $3.2 billion for the rest of the month, according to the report.
Also Read: Could Trump's Tariffs Redirect FII Investments Toward Indian Stock Markets?
The top five sectors in which FIIs held Indian equities were BFSI, IT, energy and gas, auto, and pharmaceuticals, accounting for 60% of FII holdings. Pharma and auto showed a marginal sequential increase, while IT and oil and gas saw a decline.
On Wednesday, foreign portfolio investors (FPIs) sold Rs 4,999 crore in Indian equities, while domestic institutional investors (DIIs) bought Rs 6,794 crore in shares. US President Donald Trump has declared an additional 25% tariff on India, bringing the total tariffs to 50%, effective August 27. Tariffs were imposed on the grounds that India was "fuelling" Russia's war machine through its imports of Russian crude oil.
