FIIs dump financials, IT, FMCG in early December; oil & gas, metals, auto see buying

The largest selling pressure was seen in financial services, where FIIs offloaded shares worth over Rs 6,516 crore during the first two weeks of December

Foreign institutional investors turned aggressive sellers in the first half of December, with heavy outflows recorded across several key sectors including financials, information technology, services, healthcare, power, FMCG and capital goods.

The largest selling pressure was seen in financial services, where FIIs offloaded shares worth over Rs 6,516 crore during the first two weeks of December, following sales of more than Rs 3,100 crore in November. Information technology and services followed closely, with nearly Rs 3,300 crore sold in each sector during the same period. In November, FII selling in IT stood at Rs 5,794 crore, while the services sector witnessed outflows of Rs 980 crore.

Healthcare and power also saw significant selling. FIIs sold shares worth over Rs 2,351 crore in healthcare and Rs 2,118 crore in power during the first fortnight of December, after selling Rs 1,783 crore and Rs 2,615 crore, respectively, in November. FMCG stocks faced continued pressure, with outflows of Rs 1,419 crore during the period, following heavy selling of Rs 4,764 crore in the previous month. Capital goods witnessed selling worth Rs 1,218 crore in December after FIIs had been net buyers to the tune of Rs 2,495 crore in November.

The telecommunications sector saw a sharp reversal in trend, with FIIs selling Rs 879 crore in the first half of December after strong buying of Rs 14,326 crore in November. Construction stocks recorded selling worth Rs 1,126 crore, while the real estate sector saw outflows of Rs 670 crore during the period.

On the buying side, oil and gas emerged as the standout sector, continuing to attract strong investor interest. FIIs invested around Rs 3,000 crore in the sector in the first half of December, following purchases worth Rs 7,169 crore in November. Metals and auto stocks also witnessed buying, with inflows of Rs 807 crore and Rs 611 crore, respectively, after having seen selling of Rs 680 crore and Rs 1,642 crore in November.