FPI net sell $(2.70) Billion in Indian equities in September 2025

9 Oct 2025 , 11:01 AM

FPIS NET SELL $(2.70) BILLION IN SEPTEMBER 2025

FPIs sold equities worth $2.70 Billion in September, and have now sold $9.72 Billion in equities in July, August, and September combined. With the US steeply raising the visa fees, along with punitive tariffs on pharmaceuticals; it was healthcare and IT that bore the brunt of the FPI selling in September. FPIs net sold $(1.11) Billion in the first fortnight; and $(1.59) Billion in the second fortnight of the month.

In fact, September was a month with several positives. Firstly, the GDP growth for Q1FY26 announced on the last day of August came in at a robust 7.8%. Also, the current account deficit for the first quarter was well in control. The monetary policy announced on October 01, 2025 has also given a positive vibe by cutting inflation forecast by 50 bps and raising GDP growth forecast for FY26 by 30 bps. However, despite all these positives, the visa issue and the punitive tariffs remain a major macro-overhang for the Indian markets.

FPI AUC FALLS FURTHER IN SEPTEMBER 2025

Between June 2025 and September 2025, FPI equity AUC fell from $867 Billion to $797 Billion. FPI Equity AUC is now -14.4% below the peak of $931 Billion in September 2024. Combined FPI AUC at $876 Billion is also well below September 2024 peak of $1.04 Trillion.

Industry Group	FPI AUC (Sep-25) ($ Billion)	FPI AUC (Aug-25) ($ Billion)
Financials (BFSI)	248.41	246.46
Automobiles and Auto Components	64.13	60.70
Oil & Gas	55.62	55.03
Information Technology (IT)	55.10	58.68
Healthcare and Pharmaceuticals	53.05	55.14
Capital Goods	43.99	42.28
Fast Moving Consumer Goods (FMCG)	43.08	46.28
Telecommunications	38.86	39.59
Consumer Services	36.37	37.69
Power (generation and transmission)	26.96	25.87
Metals and Mining	24.84	22.74
Consumer Durables	20.26	21.68
Services	19.21	19.19
Chemicals	14.67	15.25
Realty	14.39	14.99
Construction	14.09	13.87
Cement	13.89	14.59
Top 17 Sectors	786.92	790.02
Other 6 sectors	10.01	10.50
Total FPI AUC	796.93	800.52

Data Source: NSDL

These are the top 17 sectors where FPI AUC is above $10 Billion as of September 2025. Out of the 23 sectors identified by NSDL, AUC of top-17 sectors accounted for 98.7% of total FPI equity AUC of $796.93 Billion. FPI AUC fell in July and August, and is now well below the peak AUC of $931 Billion in Sep-24. Here are drivers of AUC change in September 2025?

At $248.41 Billion, BFSI dominates AUC. The sectors with highest MOM accretion in AUC were; Metals & Mining (9.2%), Automobiles (5.7%), Power (4.2%), and Capital Goods (4.0%). Sectors that saw depletion in AUC on MOM basis were FMCG (-6.9%), Consumer Durables (-6.6%), IT (-6.1%), Cement (-4.8%), Realty (-4.0%), and Chemicals (-3.8%).

SECTORAL POCKETS OF FPI BUYING IN SEPTEMBER 2025

In September 2025, FPIs were net sellers to the tune of $(2.70) Billion. Here are the major sectors with positive FPI flows in September 2025.

FPI Net Buying in Sectors	H1-Sep-25 ($ Million)	H2-Sep-25 ($ Million)	Sep-25 ($ Million)
Automobiles	+216	+195	+411
Capital Goods	+172	+168	+340
Metals & Mining	+158	+50	+208
Financial Services (BFSI)	+185	-72	+113
Construction	+15	+82	+97

Data Source: NSDL

Despite the heavy FPI selling overall, there were several sectors with positive flows. Automobiles continued to see positive FPI flows on the back of the cut in GST and the festive season surge in demand. Capital goods and construction were two more sectors that saw a surge in inflows from higher capex by the government and more infrastructure activity in the economy. Above all, metals and mining appear to be gaining from a greater proximity between India and China in recent weeks.

BIG BANG SELLING IN HEALTHCARE, IT, FMCG

Here is a sectoral break-up of FPI net outflows from Indian equities in September 2025.

FPI Net Selling in Sectors	H1-Sep-25 ($ Million)	H2-Sep-25 ($ Million)	Sep-25 ($ Million)
Healthcare	-181	-509	-690
Information Technology (IT)	-228	-454	-682
Fast Moving Consumer Goods (FMCG)	-124	-350	-474
Consumer Durables	-37	-372	-409
Consumer Services	-368	-13	-381
Power	-239	-66	-305
Telecommunications	-170	-103	-273
Realty	-218	-37	-255

Data Source: NSDL

There were broadly 2 themes on the sell side. Firstly, there are the pure consumer stocks like FMCG, consumer durables and consumer services. Then the tariff overhang and the visa overhang have taken its toll on sectors like Healthcare and IT, with both these sectors seeing heavy outflows in September 2025.

OUTLOOK FOR FPI FLOWS IN COMING MONTHS

What will decide the colour of FPI flows in coming months? Firstly, punitive tariffs at 50% and the visa overhang will be negatives. However, the markets will take some solace from the fact that the monetary policy has made a rather bold statement about the trajectory of the Indian economy. The monetary policy has projected 50 bps lower inflation at 2.6% and 30 bps higher GDP growth at 6.8% for FY26. That change in projection is a sign of confidence that the government and the RBI have demonstrated in the domestic Indian economy. That, in itself, should give ample confidence to the FPIs for now. We have to wait and watch!