BFSI, Auto, Telecom: What did foreign investors buy and sell in June 2025?

FIIs biggest investment was in the BFSI sector in June 2025, followed by Oil and Gas, and Automobile sectors

Foreign institutional investors (FIIs) continued to display confidence in Indian equities in June, turning net buyers for the fourth consecutive month. Despite global uncertainties keeping D-street mood cautious due to Israel-Iran rift, foreign investors and domestic investors (DIIs) remained net buyers in the Indian equity market, signalling resilience. As per data compiled by JM Financial, FIIs bought Indian equities worth ₹20,420 crore ($2.4 billion) last month, while DIIs invested $8.5 billion.   Notably, FIIs were net sellers till June 16, offloading equities to the tune of $0.4 billion. They, however, turned net buyers post that, and purchased Indian equities worth $2.7 billion over the rest of the month. This also helped the benchmark Nifty50 rise 3.1 per cent in June as against a 1.7-per cent gain logged in May. D-street mood was largely buoyed by the Reserve Bank of India's (RBI’s) surprise repo rate cut by 50 basis points (bps) and a series of bilateral trade agreements (BTAs) on the global front.

What did FIIs buy in June 2025?

As per the brokerage's analysis, FIIs continued to show strong interest in BFSI stocks in June, albeit the pace of inflows moderated slightly. The sector saw inflows of $1,042 million. This was followed by Oil and Gas at $716 million, Automobiles at $553 million, Telecom at $320 million, and Chemicals at $278 million.  According to the brokerage, BFSI, IT, Oil and Gas, Auto, and Pharma, together, accounted for 60 per cent of the total FII equity assets in India. Among these, Oil & Gas witnessed a marginal sequential increase in shareholding in June 2025.

On the other hand, sectors such as Power ($735 million), FMCG ($463 million), Consumer Durables ($290 million), Capital Goods ($215 million), Pharma ($47 million), and Metals ($42 million) saw net outflows, indicating a shift in sectoral preference by FIIs during the month.

BFSI continued to dominate FIIs' assets under custody (AUC) in India, accounting for 31.6 per cent, marginally down from 31.7 per cent in May 2025, with FIIs maintaining their position as net buyers in the sector. IT Services remained the second-largest holding at 8.2 per cent, unchanged from the previous month.  Overall, FII shareholding in Indian equities was 15.9 per cent as of June, 2025, which was broadly flat compared to May, 2025. In absolute terms, FII Equity AUC stood at ₹74.2 trillion, up 4.1 per cent from ₹71.2-trillion AUC logged in May, 2025.

Change of course in July?

While the month has just started, foreign investors have remained net sellers in the Indian equity market. At home, the Jane Street incident has added to the nervous sentiment in an already cautious market. On the global front, fresh developments and timeline adjustments related to trade tariffs have further contributed to investor wariness. So far this month, benchmark indices have remained largely flat, though analysts believe the upcoming earnings season might offer some positive cues.