FPIs switch gears: Cyclicals gain, defensives lose in 2025

FPIs pulled 1.67 trillion from Indian equities in 2025, despite sharp sector-level divergence

- Mayur Bhalerao

In a dramatic shift of strategy, foreign investors rewrote the rules for the Indian market in 2025. While they pulled a massive ₹1.67 trillion out of equities overall, this headline number tells only half the story. The real action was a stark and surprising split: a select group of industrial and commodity sectors basked in fresh inflows, even as longtime favourites like technology and consumer goods were unceremoniously dumped.

Telecom stood out as the strongest foreign investor favourite for a third straight year, drawing uninterrupted inflows despite broad market volatility. Mint analysis of CMIE data shows overseas investments into the sector rose from ₹5,529 crore in 2023 to ₹23,737 crore in 2024, before jumping further to ₹48,222 crore in 2025. This steady appetite came even as most other sectors were hit by heavy foreign selling.

Oil and gas, which had witnessed sharp outflows of ₹22,813 crore in 2023 and ₹56,340 crore in 2024, staged a clear turnaround with ₹8,431 crore in inflows in 2025.

Metals, mining and chemicals— typically influenced by global demand cycles—also moved back into positive territory, attracting ₹4,661 crore and ₹6,017 crore, respectively, marking their strongest foreign buying in three years.