FIIs Sell ₹10,956 Crore In IT Stocks In Early February; Holdings Fall To 4-Year Low

The foreign institutional investors (FIIs) sold more than ₹10,956 crore in information technology stock in the first half of February, as the sector remained weak. The analysis of information published by the National Securities Depository Limited (NSDL) showed that the total investment of the FII in IT stocks has decreased to ₹4.49 lakh crore by February 15.

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This is the lowest amount of FII holdings in the IT sector in 4 years. The number is against ₹5.34 lakh crore by the end of January 2026, thus showing a 16% depreciation in the worth of holdings within two weeks.

Continuous Selling Since Start Of 2025

NSDL data demonstrated that since the onset of 2025, FIIs have been net sellers in the IT stocks. In the industry, cumulative sales have hit almost ₹74,698 crore in the process.

By the beginning of 2025, the FII holdings in the IT stocks would have reached a historic high of approximately ₹7.3 lakh crore. Ever since, the worth of these holdings has fallen by 38%, which is an indication of continuous selling and a decrease in stock values.

The stock-wise change in shareholding of FII is likely to be revealed in the shareholding patterns of the March quarter.

IT Stocks Under Pressure

The broader weakness in the IT pack is reflected in stock performance during February. Infosys has declined 16.5% so far in the month, while Tata Consultancy Services (TCS) has fallen 14%. HCL Technologies is down 14.2%, Tech Mahindra has dropped 12%, and Persistent Systems and Wipro have fallen around 10% each.
During February to date, the Nifty IT index has declined 14%, according to exchange data.

FII Holdings Drop 16% From January-End

The data on NSDL indicated that FII ownership in IT stocks was ₹5.34 lakh crore as at January 2026. It has since dropped by 16% to ₹4.49 lakh crore as of February 15.

The data shows that FII has been a net seller of IT stocks since the beginning of 2025 and has sold almost ₹74,698 crore of stocks in the time frame. The shareholding disclosures in the March quarter are likely to incorporate details of stock-wise changes of stakeholders.

FII investments in IT stocks stood at an all-time high of approximately ₹7.3 crores towards the start of 2025. These holdings have since lost value by 38% which is due to a combination of further sales and a decline in the value of stocks.

Sectoral And Broader Market Trends

The Nifty IT index plummeted by 14% through the current sell-off off as exchange information shows. Conversely, it is reported that the FIIs had purchased shares in the capital goods, metals and financial services sectors in the period.

The broader market indices, such as midcap and smallcap indices, were traded mixed in the initial deals on February 19, with the market breadth balanced as per the NSE data. In the report, no particular flow of currency or international indicators was mentioned.

According to NSDL data, FIIs sold ₹10,956 crore worth of the IT stocks in early February, and this was sufficient to bring the cumulative amount of money in the sector to a four-year low of ₹4.49 lakh crore.