Mumbai– – Foreign and domestic institutional investors displayed renewed confidence in the Indian equity markets in March 2025, emerging as strong net buyers and collectively pumping in over $5 billion, according to a report released by JM Financial Securities on Thursday.
Foreign Institutional Investors (FIIs) contributed $975 million in net inflows during the month, while Domestic Institutional Investors (DIIs) made a more robust contribution, investing $4.3 billion.
The report highlighted a significant shift in FII sentiment over the course of the month. Up until March 19, FIIs were net sellers, but sentiment reversed sharply in the second half, with foreign investors infusing $3.6 billion into Indian equities.
This late-month surge lifted FII shareholding in Indian stocks to 16.8% in March, up from 15.9% in February.
Among sectors, banking, financial services, and insurance (BFSI) led the pack, attracting $1.7 billion in FII inflows. Telecom followed with $360 million, while the metals sector drew $219 million. Other sectors that saw smaller yet notable interest included real estate, chemicals, media, and pharmaceuticals.
FIIs also continued to maintain substantial positions in core sectors. As of March, BFSI, IT, Oil & Gas, Auto, and Pharma collectively accounted for nearly 60% of total FII holdings in Indian equities.
The BFSI sector’s share in FII Assets Under Custody (AUC) in India rose to 31.2% in March from 30.8% a month earlier. Pharma also saw a marginal increase, climbing to 6.9% from 6.8%.
However, the IT sector – the second-largest in FII holdings – witnessed a decline in its share, slipping to 9% from 9.9% amid continued geopolitical uncertainties. The Auto sector also saw a drop, falling to 6.7% from 7%, while Oil & Gas holdings remained unchanged. (Source: IANS)
