FIIs pull ₹33,336 cr in Jan 2026, dump defensives, buy metals: PL Capital

Foreign institutional investors (FIIs) pulled out ₹33,336 crore from Indian equity markets in January 2026, marking the sharpest monthly outflow since August 2025, even as they selectively increased exposure to metals, according to an analysis by PL Capital.

 

The brokerage highlighted the persistent selling pressure in recent months by pointing out that only October 2025 has seen net FII inflows since July 2025. Heavy selling in defensive and consumption-related industries like FMCG, healthcare, and consumer services drove the January outflows. With the exception of small inflows in June and December 2025, the IT industry has also been experiencing widespread outflows since April 2025. 

 

The FMCG sector saw intensified outflows of ₹7,497 crore in January 2026, significantly higher than ₹5,428 crore in January 2025 and ₹5,844 crore recorded in December 2025. These flows remain well below the long-term average outflow of ₹9,79.8 crore, PL Capital said.

 

Healthcare also witnessed accelerated selling, with outflows rising to ₹6,162 crore in January 2026 compared to ₹2,994 crore in December 2025. Consumer services recorded renewed outflows of ₹5,513 crore during the month.

 

Financial services, a key index heavyweight, continued to see substantial selling, with ₹8,592 crore outflows in January 2026, albeit lower than the ₹10,525 crore outflow in December 2025. The brokerage noted that flows into the sector remain significantly below long-term averages.

Metals see sharp inflows; capital goods reverse trend

On the other hand, the Metals & Mining sector emerged as a majoroutlier. After witnessing outflows of ₹2,382 crore in January 2025, the sector reversed trend with inflows of ₹2,984 crore in December 2025. In January 2026, inflows surged sharply to ₹11,526 crore, significantly above the long-term average of ₹145.7 crore, indicating a clear rotation toward commodity-linked plays.

 

Capital goods also witnessed a reversal in trend, recording inflows of ₹2,761 crore in the month under review after consecutive months of outflows. However, analysts noted that these inflows remain below historical averages of ₹1,834.2 crore.

Broader caution persists across sectors

According to the report, sectors such as IT, power, realty, telecommunication and construction materials continued to experience net outflows in January, reflecting broader caution among foreign investors. Overall, the data showed a clear shift in FII positioning, with investors trimming exposure to defensives and financials while selectively allocating capital to metals and certain cyclical pockets.