April Market Pulse: Fortnightly Investment Insights
Financial Report
Information Technology Leads FPI Sell-Off as Sector Rotation Intensifies
Information Technology saw the steepest selling of ₹13,828 Cr in the first half of April, cementing its position as the worst-hit sector of 2025 so far.
Financial Services continued its weak streak from March, with outflows of ₹4,501 Cr.
Other sectors that witnessed significant unwinding included Capital Goods, Metals & Mining, Oil & Gas, Automobile & Auto Components, Construction and Healthcare, reflecting a broader shift away from cyclical and rate-sensitive segments.
Telecom Leads FPI Buys Amid Defensive Tilt
Telecommunication drew the highest FPI inflows at ₹2,137 Cr, signaling strong interest in digital infrastructure. Modest buying was seen in FMCG (₹587 Cr) and Media & Entertainment (₹103 Cr), while Power and Diversified sectors saw limited participation.
FPI Sectoral Trends for 2025 Till Now: Telecom Tops, IT Tanks
Telecommunication led FPI equity purchases so far in 2025 with inflows of ₹13,352 Cr, followed by modest interest in Chemicals and Media & Entertainment. In contrast, Information Technology witnessed the sharpest sell-off of ₹27,945 Cr, emerging as the worst-hit sector of the year. Financial Services, FMCG, Auto & Components, Consumer Services, Capital Goods, Oil & Gas and Construction also faced heavy selling, reflecting a clear shift in investor preference.
FPIs Turn Net Sellers in Both Equity and Debt in April’s First Half
FPIs turned net sellers across both equity and debt segments in the first half of April, offloading ₹33,927 Cr from equities and ₹14,808 Cr from the debt market.
This marks a sharp increase from March, where equity outflows were limited to ₹3,973 Cr due to late-month buying.
So far in 2025, FPIs have pulled out ₹1.50 lakh Cr from Indian equities — marking the worst start to a calendar year in over a decade — while allocating ₹34,069 Cr into the debt market.
A renewed surge in equity buying has been observed in recent sessions, indicating rising optimism for a potential rebound in the latter half of April.
DIIs Provide Cushion Amid FPI Selling
DIIs remained net buyers in equities, investing ₹25,637 Cr during the first half of April. For calendar year 2025 so far, DIIs have infused a robust ₹2.14 Lakh Cr into equities. Their consistent support continues to provide a cushion to domestic markets amid volatile foreign flows.
Mutual Funds Bet Big on Equities
Mutual Funds invested ₹19,225 Cr in equities and ₹10,489 Cr in debt in the first half of April. For the calendar year 2025 so far, Mutual Funds have infused ₹1.38 lakh crore into equities.
FPI AUC Slips Marginally in April Amid Equity Outflows
In the first half of April 2025, the total Assets Under Custody (AUC) of Foreign Portfolio Investors dipped slightly to ₹73.11 Lakh Cr from ₹73.76 Lakh Cr in March. The decline was primarily led by a reduction in equity holdings.
For a comprehensive understanding and more insights, please go through our detailed report.