FMCG, financials, IT saw most FPI selling pressure in first half of Jan

FPIs extend equity selloff in early 2026, dumping FMCG, financials and IT stocks, while rotating into metals and cyclical sectors amid earnings and trade worries

Foreign portfolio investors (FPIs) continued their selling spree in Indian equities in the first half of January 2026, extending a trend that saw record outflows of ₹1.7 trillion in 2025, amid persistent concerns over a corporate earnings revival and uncertainty surrounding the India-US trade deal. 

FPIs were net sellers of Indian shares worth ₹19,014 crore during the first two weeks of January. 

Fast-moving consumer goods (FMCG) stocks bore the brunt of the selloff, with net outflows of ₹6,128 crore — the highest among all sectors. Financials also saw substantial selling, with outflows of ₹3,190 crore, as FPIs reassessed rate-cut expectations and asset-quality risks, particularly in the non-banking financial sector. Information technology stocks witnessed net selling of ₹2,075 crore, weighed down by weak global demand, cautious commentary from IT companies, and uncertainty around discretionary spending in the US. 

In contrast, metals and mining attracted inflows worth ₹2,689 crore, while capital goods and consumer durables saw buying of over ₹300 crore each. The latest flow pattern indicates a preference for cyclical and commodity-linked sectors, alongside trimming exposure to defensive and rate-sensitive stocks. 

“FMCG is likely to see single-digit volume growth in the foreseeable future, and the same holds true for IT. Buying in metals appears to be a momentum-driven bet. Over the last 30 years, both metal prices and metal stocks have shown strong cyclical behaviour,” said Chokkalingam G, founder of Equinomics.