June Market Pulse: Fortnightly Investment Insights
Financial Report
FPI Buying Focused on Financials and Chemicals in June
Foreign Portfolio Investors showed strong interest in Financial Services, infusing ₹4,685 Cr during the first half of June 2025. Chemicals also attracted ₹1,405 Cr, reflecting a preference for defensive and globally integrated sectors.
Oil & Gas and Capital Goods saw over ₹1,190 Cr each, indicating continued faith in core infrastructure themes. Realty, Services, Textiles and Media saw moderate inflows.
Heavy FPI Selling in FMCG & Power
FMCG led FPI outflows in early June with net selling of ₹3,626 Cr, likely due to high valuations and rural demand concerns. Power saw outflows of ₹3,120 Cr amid global yield volatility.
Consumer Durables (₹1,893 Cr), IT (₹1,713 Cr) and Consumer Services (₹1,461 Cr) also saw pressure, indicating reduced appetite for rate-sensitive sectors. Telecom, Construction Materials and Metals & Mining faced smaller withdrawals.
FPI Bets in 2025 So Far: Telecom Tops the Chart
Telecommunication has been the top FPI investment theme in 2025, with inflows of ₹23,065 Cr, reflecting strong confidence in India’s digital growth. Financial Services (₹9,456 Cr) and Services (₹7,351 Cr) also saw strong interest. Chemicals attracted ₹4,863 Cr, while Media and Textiles received modest but steady inflows.
Tech & FMCG See Deepest FPI Cuts in 2025
Information Technology led FPI exits in 2025 with ₹33,479 Cr in outflows, driven by global demand worries and margin pressure. FMCG saw ₹17,819 Cr in net selling, amid valuation concerns. Auto (₹16,058 Cr), Consumer Services (₹14,231 Cr) and Power (₹12,231 Cr) also faced heavy selling. Consumer Durables, Construction and Healthcare saw notable outflows as well.
FPI Sell-Off Resumes After Two-Month Relief
After reversing their selling streak with inflows of ₹4,223 Cr in April and ₹19,860 Cr in May, FPIs turned net sellers again in the first half of June 2025, offloading ₹5,401 Cr from equities. This retreat signals renewed caution amid global yield pressures and valuation concerns.
On a year-to-date basis, FPIs have pulled out a massive ₹97,892 Cr from Indian equities, making 2025 one of the most volatile years for foreign flows.
FPI Debt Outflows Surge Amid Yield Volatility
FPIs also turned aggressive sellers in the Indian debt market, withdrawing a massive ₹27,063 Cr in the first half of June — the highest fortnightly debt outflow in 2025.
This contrasts with their YTD debt inflows of ₹9,584 Cr, indicating rising concerns over global rate dynamics and currency stability. The sharp reversal could put pressure on bond yields and the rupee if the trend sustains.
DII Buying Hits Record Pace After May's Surge
Domestic Institutional Investors (DIIs) continue to exhibit strong buying appetite, investing ₹44,151 Cr in equities during just the first 15 days of June — after a powerful ₹67,642 Cr inflow in May. This puts June on track to become another milestone month for DIIs. Year-to-date, DIIs have now infused over ₹3.29 Lakh Cr in equities, a historic high for this time frame.
Mutual Funds Strengthen Market Support with ₹30,271 Cr Inflow
Mutual Funds added ₹30,271 Cr into equities during the first half of June 2025, continuing their consistent deployment seen through the year. With sustained SIP inflows and deepening retail interest, total MF equity investments now stand at ₹2.23 Lakh Cr so far this year.
FPI Assets Edge Higher in Early June Amid Mixed Flows Across Segments
In the first half of June 2025, FPI holdings in equity increased marginally by ₹25,566 Cr to ₹71,51,925 Cr, primarily driven by gains in the broader markets despite net selling activity.
Notably, investments in Corporate Bonds dropped by ₹8,273 Cr, and Debt FAR saw a sharper decline of ₹15,332 Cr— both pointing to reduced participation in long-term and sovereign bond instruments.
Overall, total FPI assets increased slightly by ₹7,627 Cr to ₹78,10,653 Cr, reflecting a mixed trend with cautious optimism.
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