FIIs Withdraw ₹333 Bn In January; Metals See ₹115.3 Bn Inflows

Foreign institutional investors recorded net outflows of about ₹333 billion from Indian equities in January 2026, the steepest monthly withdrawal since August 2025, according to sectoral flow data compiled by Mannat Gandhi, Database Analyst at PL Capital. 

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Since July 2025, October was the only month that saw net inflows; all other months recorded net selling. The January numbers showed a sharp shift in allocations across sectors.

Metals Record Highest Inflows

Metals and mining received net inflows of ₹115.3 billion during January 2026, making it the strongest-performing sector in terms of foreign flows, according to PL Capital. The inflow was significantly above the sector’s long-term average and followed earlier phases of selling.

Capital goods also moved back into positive territory, with inflows of ₹27.6 billion after consecutive months of outflows. The chemicals segment registered modest inflows that were broadly in line with historical averages.

FMCG, Healthcare, Financials See Selling

Consumption-linked sectors saw substantial withdrawals. The FMCG sector recorded net outflows of ₹74.97 billion in January. ₹55.13 billion left consumer services, and ₹61.62 billion left healthcare. Consumer durables recorded outflows of ₹10.5 billion, according to the data.

Financial services, traditionally a key destination for foreign capital, saw net outflows of ₹85.92 billion during the month. The information technology sector recorded outflows of ₹18.35 billion. PL Capital’s data showed that foreign flows into IT have remained negative on a net basis since April 2025.

Cyclical Sectors Also Under Pressure

Automobile and auto component stocks saw net outflows of ₹35.94 billion in January. The telecommunication sector recorded withdrawals of ₹47.77 billion, while realty stocks saw ₹26.55 billion move out. The power sector registered outflows of ₹18.67 billion.

In oil and gas, foreign investors withdrew ₹9.4 billion during the month. Services and construction materials continued to report negative flows, though lower than in earlier periods. Media and textiles didn't move much, and when they did, they were mostly in line with longer-term trends.

According to PL Capital, the January 2026 data showed that foreign flows were mostly going to certain commodity-linked sectors. Most of the consumption, financial, and technology sectors, on the other hand, were net sellers.