IT, FMCG stocks witness most FPI selling in first half of March 2025

Foreign portfolio investors (FPIs) offloaded stocks worth ₹30,013 crore in the first fortnight of March, triggered by the disappointment at declining corporate profits and uncertainty over the US trade policy.

 

Information technology (IT)and fast-moving consumer goods (FMCG) stocks bore the brunt of the FPIs selling in the first two weeks of this month. Foreign investors sold IT stocks worth ₹6,934 crore, FMCG worth ₹5,106 crore, and auto stocks worth ₹3,640 crore. Other sectors experiencing significant outflows included financial services (₹3,311 crore), and healthcare (₹2,049 crore).

 

"FMCG companies are expected to post single-digit volume growth in the March quarter. For IT, there is some concern that IT exports could get impacted due to the ongoing changes in the US trade policy,” said Chokkalingam. G, cofounder of Equinomics.

 

In contrast, metals and services stocks saw inflows of ₹1,179 crore and ₹305 crore, respectively. Financial services continue to have the highest sectoral allocation at ₹30.5 per cent, declining from 30.8 per cent at the end of February. IT stocks have an allocation of 9.4 per cent, the second-highest, although the allocation has dropped from 9.8. The allocation to oil and gas stocks increased to 7.2 per cent from 7 per cent earlier.