FIIs pull out $9.2 billion from Indian equities in 2025, but bet big on telecom and financials

Foreign investors have withdrawn approximately Rs 79,344 crore (~USD 9.2 billion) from Indian equities in 2025. However, a closer look reveals a more strategic approach: while they are pulling back from certain areas, they are simultaneously boosting investments in select sectors. This pattern suggests that FIIs are favouring growth-oriented industries—such as finance, telecom, and services—that are closely tied to India’s economic expansion, rather than defensive sectors, according to NSDL FPI sectoral data.

FIIs Back Telecom & Financials as 2025 Growth Drivers

The top favourite is Telecom. FIIs have consistently bought into the sector every month, with a whopping Rs 26,968 crore invested so far this year—more than any other sector.

FIIs have been net buyers in Financial Services for the last five straight months—even the first 15 days of July saw an inflow of Rs 820 crore. So far in 2025, the sector has pulled in Rs 14,537 crore, with the biggest push coming in April alone at Rs 18,409 crore. That’s a strong vote of confidence in India’s banking and finance story.

They are also showing rising interest in the Services sector, with Rs 10,027 crore in net inflows. This likely reflects faith in the country’s growing domestic demand and exports in business services.

Now for the flip side.

The broader picture remains cautious. FIIs were net sellers to the tune of Rs 79,344 crore till mid-July, with major outflows concentrated in:IT stocks have seen the biggest exits, with Rs 36,079 crore pulled out so far.FMCG, once a defensive favourite, saw Rs 19,606 crore in net sales.

Power wasn’t spared either, with outflows of Rs 15,219 crore, despite a small positive in June.

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Consumer Durables have been out of favour all year—FIIs have been sellers every month, adding up to Rs 13,188 crore in exits.

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