FPIs stay in buying mode, consumer services lead sectoral inflows in first half of July

Consumer services, including e-commerce and hotels, attracted the highest foreign buying during the period, followed by metals and mining and healthcare. In contrast, automobiles and auto components, capital goods and telecom witnessed the highest outflows. Of the 24 sectors tracked, 15, including banks and IT, got flows, while eight saw outflows.
"The biggest highlight of this period is that after months of consistent selling in IT, FIIs have turned marginal buyers this fortnight, suggesting the sector may have bottomed out," said Apurva Sheth, head of research, Samco Securities. "Metals and mining remain a long-term structural theme despite recent underperformance, making it an attractive buying opportunity for both FIIs and domestic investors."
Read more: FPIs stage strong comeback in financials with record fortnightly inflows in 2026
In IT, they were moderate buyers worth ₹60 crore after pulling out over ₹34,000 crore from these shares in 2026 till June, the second-highest selling in a sector after banks. Banks received flows worth ₹1,975 crore in the first half of July after getting ₹3,371 crore in June. So far in 2026, they have sold bank shares worth over ₹1 lakh crore.
Foreign investors net bought shares worth ₹15,560 crore across sectors during July 1-15, after pumping over ₹14,000 crore in the second half of June as well, according to NSDL data.
"Foreign investors have turned buyers following the decline in energy prices after the Middle East ceasefire eased geopolitical concerns," said Pankaj Pandey, head of fundamental research, ICICI Direct. "We have also seen short covering in index heavyweights ahead of the earnings season, while the strong buying in metal stocks has come as a surprise given their recent underperformance."
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* Consumer services, including e-commerce and hotels, attracted the highest foreign buying.
* Metals and mining and healthcare followed as sectors attracting foreign buying.
* Automobiles and auto components, capital goods, and telecom witnessed the highest outflows.
* Fifteen of the 24 tracked sectors received flows; eight saw outflows.
* FIIs turned into marginal buyers in the IT sector after months of selling.
* The IT sector experienced moderate buying worth ₹60 crore following a sale of over ₹34,000 crore till June.
* Banks received flows worth ₹1,975 crore in the first half of July, compared to ₹3,371 crore in June.
* Foreign investors net bought shares worth ₹15,560 crore across sectors during July 1-15.

Foreign buying was concentrated in consumer services, including e-commerce and hotels, metals and mining, and healthcare, while outflows were highest in automobiles and auto components, capital goods, and telecom. Out of 24 tracked sectors, 15 received flows, and eight experienced outflows. In the IT sector, Foreign Institutional Investors (FIIs) shifted from consistent selling to becoming marginal buyers, suggesting a potential bottom for the sector. Metals and mining are noted as a long-term structural theme attractive to both foreign and domestic investors. Banks recorded net inflows in the first half of July, having previously seen higher inflows in June. Foreign investors collectively net bought shares worth ₹15,560 crore across sectors during the first half of July, following substantial buying in the second half of June.

The shift from sustained selling by FIIs in IT to marginal buying signals a potential inflection point, suggesting that previous selling pressure may have exhausted the downside risk for those investors. The emphasis on metals and mining as a structural theme highlights a divergence between short-term flows and long-term asset valuation, creating an opportunity gap for long-term strategic positioning. Furthermore, the reversal in sentiment regarding energy prices influencing geopolitical concerns created a temporary catalyst for foreign capital re-engagement across markets. The pattern of inflows into financials juxtaposed with outflows from capital goods and telecom reveals a sector rotation driven by immediate macroeconomic shifts rather than purely fundamental growth narratives. This suggests that while thematic investing persists (metals), short-term flow dynamics are highly sensitive to external geopolitical variables, which can temporarily override established sector performance metrics. What factors might sustain the metal theme if underlying economic momentum shifts away from commodity cycles?

FPIs stay in buying mode, consumer services lead sectoral inflows in first half of July

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FPIs stay in buying mode, consumer services lead sectoral inflows in first half of July

Facts Only

Executive Summary

Full Take

Sentinel — Human