FIIs dump IT, financials, oil & gas stocks amid global headwinds

In contrast, select sectors such as FMCG, consumer services, metals and mining, and telecom attracted buying interest in the second half of July

Foreign institutional investors (FIIs) turned aggressive net sellers of information technology stocks in the second half of July, extending their selling spree from the first half.

During the last two weeks of the month, FIIs offloaded over Rs 14,400 crore worth of IT stocks, following sales of more than Rs 5,480 crore in the first half. The heavy selling pressure stemmed from weak quarterly earnings, global trade tensions, and cautious corporate outlooks.

As a result, the Nifty IT index posted a steep decline of 9.4 percent in July—its sharpest monthly fall since February 2025 and the second-largest drop this year.

Beyond IT, FIIs also exited financials, oil and gas, and real estate stocks. Financial stocks saw net selling of over Rs 6,700 crore in the latter half of July, reversing marginal buying seen in the first half. Oil and gas stocks witnessed outflows exceeding Rs 4,177 crore, while realty stocks saw selling worth over Rs 3,684 crore during the same period.

Auto and consumer durables stocks experienced continued selling pressure throughout July. FIIs sold over Rs 2,425 crore in auto stocks and Rs 1,322 crore in consumer durables during the second half, after offloading Rs 1,160 crore and Rs 1,292 crore, respectively, in the first half of the month.

In contrast, select sectors such as FMCG, consumer services, metals and mining, and telecom attracted buying interest in the second half of July. FMCG stocks saw inflows of Rs 2,986 crore, rebounding from outflows of Rs 1,428 crore in the first half.

Consumer services, metals and mining, and telecom stocks witnessed continued buying momentum, with inflows of Rs 2,064 crore, Rs 1,640 crore, and Rs 1,190 crore, respectively, during the second half—building on first-half investments of Rs 953 crore, Rs 1,724 crore, and Rs 283 crore, respectively.