Financial Services, Construction Sectors Attract Strong FII Buying In Late June

Foreign institutional investors (FIIs) shifted to net buying in the second half of June after remaining heavy sellers during the first half of the month, with financial services, construction and consumer-oriented sectors receiving the largest share of fresh investments, according to NSDL data.

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The turnaround came after FIIs invested nearly ₹14,100 crore in Indian equities during the second half of June. The inflows marked a reversal from the selling trend seen earlier in the month and reflected renewed interest in select domestic sectors despite continued selling in a few cyclical segments.

Financial Services Leads Sectoral Inflows

Financial services emerged as the biggest beneficiary of FII buying. NSDL data showed the sector received net inflows of around ₹14,634 crore in the second half of June after witnessing net outflows of ₹11,263 crore in the first fortnight.

Construction followed with net purchases of ₹3,484 crore, reversing net sales of ₹603 crore recorded earlier in the month. Consumer services also saw a sharp turnaround, attracting ₹3,081 crore after FIIs had withdrawn ₹1,852 crore during the first half of June.

The latest sector-wise allocation indicates that FIIs increased exposure to domestic demand-driven businesses as trading activity improved during the latter part of the month.

Consumer-Focused Segments Also Gain

Consumer durables recorded net FII inflows of ₹2,564 crore after experiencing net selling of ₹634 crore in the first half of June. Realty also moved back into positive territory with investments worth ₹1,893 crore, compared with outflows of ₹1,093 crore earlier in the month.

Healthcare witnessed another notable reversal. After net sales of ₹4,501 crore in the first fortnight, the sector attracted fresh investments of ₹1,435 crore during the remaining weeks of June.

The services segment extended its positive trend, receiving ₹2,592 crore in the second half after attracting ₹302 crore during the first half of the month.

Metals, Power Continue To See Selling Pressure

While buying returned across several sectors, FIIs remained net sellers in metals and mining, power, oil and gas, capital goods and automobiles.

Metals and mining registered the largest outflow at around ₹4,371 crore, following net sales of ₹4,722 crore in the first half of June. The power sector recorded outflows of ₹3,743 crore, while oil and gas witnessed net selling of ₹2,789 crore after already seeing withdrawals of ₹10,488 crore earlier in the month.

Capital goods and auto also remained under pressure, with FII outflows of ₹1,442 crore and ₹1,324 crore, respectively. Selling in the IT sector eased considerably, declining to ₹733 crore in the second half from ₹6,733 crore during the first fortnight.

The latest NSDL data highlights a selective shift in FII positioning during June, with investors favouring financial and consumption-linked sectors while maintaining caution toward commodities and other cyclical businesses.