FIIs Extend Financial Stock Sell-Off In Second Half Of April

Foreign institutional investors (FIIs) remained net sellers in financial stocks during the second half of April, pulling out more than ₹11,700 crore from the sector after selling equities worth over ₹19,150 crore in the first half of the month, according to National Securities Depository Limited (NSDL) data.

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The selling trend followed outflows of ₹60,655 crore from financial stocks in March. Financial companies continued to face pressure amid concerns over elevated sovereign bond yields and liquidity conditions.

Financial Stocks Face Continued Pressure

Bond yields stayed above 7% during March and April, raising concerns about mark-to-market losses on government securities portfolios held by banks and financial institutions. Higher crude oil prices and geopolitical tensions linked to the U.S.-Iran-Israel conflict also added to inflation concerns in the market.

Reserve Bank of India actions in the currency market also affected liquidity conditions. The central bank continued efforts to manage volatility in the rupee, which remained near record low levels against the U.S. dollar during the period.

Selling Seen Across Multiple Sectors

Apart from financials, FIIs sold oil and gas stocks worth ₹3,351 crore in the second half of April. The sector had already seen outflows of ₹3,352 crore in the first half of the month, according to NSDL data.

Information technology stocks recorded FII selling of ₹2,887 crore during the second half of April, while healthcare and consumer services sectors saw outflows of ₹2,445 crore and ₹2,434 crore, respectively.

Telecom stocks witnessed selling worth ₹1,908 crore during the period. Auto stocks recorded outflows of ₹1,775 crore, while construction materials saw selling of ₹670 crore.

Selective Buying In Power And Capital Goods

Even though there was a lot of selling, FIIs were interested in buying in certain sectors in the second half of April. Power stocks received inflows of ₹4,956 crore, while capital goods attracted investments worth ₹4,667 crore.

Metal stocks also saw buying worth ₹2,416 crore during the period. Construction companies recorded inflows of ₹2,199 crore, according to NSDL sectoral data.

Overall, FII outflows from Indian equity markets have crossed ₹2 lakh crore so far in 2026. Market data showed continued foreign selling amid geopolitical tensions, elevated crude oil prices, and global inflation concerns.