Priyanka Tiwari
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According to NSDL data, Foreign Institutional Investors (FIIs) have directed more than 65% of their recent investments into India’s financial sector. From mid-March to the present, FIIs invested over ₹26,000 crore in Indian equities, with ₹17,000 crore going specifically to financial services.
This follows a heavy sell-off earlier in the year, when FIIs withdrew over ₹38,000 crore from financial stocks between January and mid-March 2025.
Anticipation Builds Ahead of Q4 FY25 Earnings in Financial Sector
The renewed focus on financials comes just before the Q4 FY25 earnings season. Analysts expect Indian banks to post improved treasury gains, mainly due to lower yields on government securities and profits from forex trading amid market fluctuations.
Sector-Wise Trends: Where FIIs Are Putting Their Money
Outside financials, FIIs have maintained steady investment in:
Telecom
Chemicals
Metals & Mining
They have also resumed buying in:
Healthcare
Power
Capital Goods
Automobiles
FIIs Continue to Exit Key Sectors
Despite the overall positive trend, foreign investors have continued selling in:
Oil & Gas
Information Technology
Consumer Services
FMCG
Market Recovery in Indian Equities Since March
Indian stock indices have rebounded strongly since mid-March:
Sensex and Nifty are up over 5%
BSE MidCap and SmallCap indices rose by more than 6.3%
This recovery reflects improved investor confidence, driven by renewed FII participation and sector-specific optimism.
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