FIIs ditch financials, FMCG and auto; technology attracts $1.4 billion in October

Résumé détaillé

Foreign investors pull $2.2 billion from Indian equities during the month, with financial services and FMCG recording the steepest sectoral outflows; cumulative FII selling in…

Foreign institutional investors (FIIs) continued to pare their exposure to Indian equities in October 2026, with financial services, fast-moving consumer goods (FMCG) and automobiles bearing the brunt of the selling.

Technology, however, emerged as the most preferred sector, attracting $1.4 billion in foreign inflows during the month, according to a sector-wise analysis by Motilal Oswal Financial Services (MOFSL).

FIIs recorded net outflows of $2.2 billion from Indian equities in October, lower than the outflows seen in September. Financial services and FMCG each saw foreign investors withdraw $1 billion, while automobiles recorded outflows of $800 million.

In contrast, technology attracted the highest FII inflows at $1.4 billion, followed by telecom, which saw investments of $700 million. Overall, 14 of the 20 sectors tracked by MOFSL recorded net FII outflows during October.

The selling in October comes against the backdrop of record FII outflows of around $30.4 billion from Indian equities in calendar year 2026 so far, according to MOFSL.

Financial services remained the worst-hit sector, with cumulative outflows of $13.2 billion. Automobiles and FMCG followed, recording outflows of $4.9 billion and $4.5 billion, respectively.

On the other hand, services attracted the highest FII inflows of $1.4 billion during CY26 so far, followed by metals at $1.3 billion and capital goods at $1.1 billion.

MOFSL highlighted a shift in foreign investors' sectoral preferences compared with 2025. Telecom was the most preferred sector in CY25, attracting $5.5 billion, while technology was the least preferred, with outflows of $8.6 billion.

In CY26 so far, services have emerged as the most preferred sector, while financial services have remained the least preferred.

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