June Market Pulse: Monthly Investment Insights
Financial Report
Sector Shuffle: FPIs Load Up on Financials & Oil, Trim Power & FMCG
Sectors in Demand: FPIs Chase Financials, Oil & Auto in June
Financial Services led FPI inflows in June with a hefty ₹8,946 Cr, closely followed by Oil & Gas at ₹6,137 Cr, signaling strong confidence in India's core sectors. A sharp turnaround was seen in Automobiles and Telecommunication, where early exits flipped into aggressive second-half buying, resulting in net inflows of ₹4,724 Cr and ₹2,733 Cr respectively.
Chemicals also drew steady interest with ₹2,392 Cr, while Consumer Services witnessed renewed traction, ending with ₹1,348 Cr. FPIs added ₹910 Cr in Realty and showed a mild positive stance on IT, with net inflows of ₹1,166 Cr, reversing early selling pressure.
FPIs Exit Power, FMCG & Durables in June
Power led the FPI outflows in June with a sharp withdrawal of ₹6,311 Cr, followed by FMCG where net selling amounted to ₹3,985 Cr, reflecting profit booking in defensives. Consumer Durables saw an outflow of ₹2,493 Cr, while Capital Goods faced net selling of ₹1,831 Cr as FPIs rotated away from cyclical exposures.
Diversified sectors witnessed net withdrawals of ₹1,162 Cr, while Healthcare and Metals & Mining saw outflows of ₹1,092 Cr and ₹1,016 Cr respectively. Construction too saw mild selling pressure with FPIs pulling out ₹748 Cr, suggesting a broader recalibration of sectoral positions.
FPI Buying Back on Track with IPO Push
FPIs Stay in Buy Mode for 3rd Straight Month: Foreign Portfolio Investors (FPIs) turned net buyers in June, with ₹14,590 Cr equity inflows, marking their third consecutive month of investment. While the first half saw mild outflows, aggressive second-half buying of ₹19,991 Cr — including ₹6,124 Cr in primary markets (IPOs) — helped reverse the trend and boost sentiment.
Debt Outflows Deepen Amid Global Rate Worries: FPIs pulled out ₹22,527 Cr from Indian debt in June, including ₹5,996 Cr from corporate bonds, as US Fed uncertainty and elevated global yields weakened the appeal of Indian fixed-income assets.
YTD Snapshot: FPIs remain net equity sellers on a year-to-date basis, with total outflows of ₹77,901 Cr, while debt investments have declined to ₹14,121 Cr during the same period.
DII Inflows Surge in June
DIIs Record One of the Strongest Monthly Buys: Domestic Institutional Investors (DIIs) maintained their bullish momentum, investing a staggering ₹72,674 Cr into equities in June, surpassing the ₹67,642 Cr seen in May. Both halves of the month witnessed robust participation, driven by long-term conviction and domestic economic resilience. For the calendar year to date, DIIs have infused over ₹3.57 Lakh Cr into equities, firmly cementing their position as the market’s stabilizing force during turbulent times.
Mutual Funds Slow Down but Stay Positive in Equities
Mutual Funds Cool Off After May Frenzy: Mutual Funds poured ₹45,519 Cr into equities in June, easing slightly from their robust ₹56,302 Cr inflow in May. While the buying spree continued, the pace moderated in the second half of the month, hinting at profit booking and tactical realignment by fund managers. Cumulatively, Mutual Funds have contributed a significant ₹2.39 Lakh Cr in equities in 2025 so far, underlining steady SIP-driven flows.
FPI Holdings Jump ₹2.8 Lakh Cr in June, Cross ₹80 Lakh Cr for First Time in 2025
Total Foreign Portfolio Investors AUC( Assets Under Custody) rose to ₹80.83 Lakh Cr in June, up from ₹78.03 Lakh Cr in May, marking a monthly increase of ₹2.8 Lakh Cr. The surge was primarily driven by equity AUC, which jumped from ₹71.26 Lakh Cr in May to ₹74.19 Lakh Cr in June — an addition of nearly ₹2.93 Lakh Cr, reflecting strong market performance and inflows.
Debt segments (General, VRR, FAR) saw a marginal decline, especially Debt FAR, down from ₹2.68 Lakh Cr to ₹2.54 Lakh Cr, in line with the June net debt outflow by FPIs. Despite muted flows in debt, the overall AUC crossed the ₹80 Lakh Cr mark for the first time in CY25.
Over H1CY25, FPI total AUC increased by ₹3.18 Lakh Cr, from ₹77.64 Lakh Cr in December to ₹80.83 Lakh Cr in June. The growth was led by equities, which contributed the bulk of the gain — rising ₹2.99 Lakh Cr over the six-month period.
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