As a share of total FII assets under custody (AUC), the sectoral mix saw only marginal shifts in October. The BFSI segment strengthened its dominance, rising to 31.7% from 31.2% in September, with FIIs continuing to be strong buyers. The auto sector, while slipping slightly to 7.7% from 8%, remained the second-largest holding. IT services edged up to 7% from 6.9%, even as FIIs turned net sellers during the month. The oil and gas (O&G) segment dipped marginally to 6.9% from 7%, despite attracting fresh inflows in October. Meanwhile, pharma held steady at 6.7%, though FIIs pared some positions within the space.
At the end of October 2025, FIIs’ overall shareholding in Indian equities stood at 15.4%, marginally below 15.6% in September. However, the total equity assets under custody (AUC) rose 2.7% month-on-month to ₹72.7 lakh crore, up from ₹70.8 lakh crore in September, supported by higher market capitalization and price appreciation.
The shift in sectoral flows underscores a clear investor narrative — global funds are selectively re-entering Indian markets, favouring financials, energy, and industrial-linked sectors with stronger earnings visibility, while trimming exposure to defensives amid elevated valuations.
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