FPI Inflows Shifts From FMCG, Autos To IT, Metals

Foreign portfolio investors (FPIs) appear to be rotating their sectoral bets in Indian equities, a trend that retail investors should closely track. Data shows FPIs booked profits in financial services, autos and FMCG, sectors that delivered strong returns through 2025. Financials led last year’s rally, while autos surged post-GST developments, making profit-taking a logical move. However, FPIs turned buyers in IT, metals and consumer services, signalling a shift towards globally-linked sectors. IT stocks, long underperformers, may be seeing early positioning ahead of trade deal expectations, while metals are benefiting from a strong global upcycle. The FMCG sell-off remains surprising, especially with GST cuts likely to boost earnings. For retail investors, this highlights the importance of tracking global cues and sector rotation, not just headline performance.