How FPIs Shifted Their Sector Bets in November 2025

Foreign portfolio investor (FPI) sentiment often looks volatile when viewed only through monthly flow data. A smarter way to understand what they are really doing is to track AUC - Assets Under Custody. AUC captures both flows and market price moves, making it a far better barometer of where FPIs are actually leaning.

As of November 2025, FPIs held $835 billion in Indian equities and $920 billion overall. This is below the peak of $1.1 trillion scaled in September 2024, but short-term shifts matter more here. The real story lies in which sectors added FPI interest and which ones lost it.

Why Look at AUC Instead of Flows?

Flow numbers alone do not reveal the full picture because FPIs may be net buyers but still see AUC fall if prices drop - or vice versa. AUC shows how FPIs’ economic exposure changes after adjusting for price action.

So, November’s AUC data tells us which sectors saw genuine interest, which were flat, and which came under pressure.

Sector-Wise FPI AUC Movement in November 2025

The table below captures the sectoral shifts in AUC between October and November 2025. Background colors indicate category classification:

• Light Green: Sectors with positive AUC accretion (> +1%)
• Light Blue: Neutral to marginal movement (–1% to +1%)
• Light Red: Sectors under pressure (< –1%)

Data Source: NSDL FPI Data

Understanding These 3 Classifications

Green-shaded sectors saw meaningful positive AUC accretion - over 1%. This reflects a mix of favourable price action and FPI buying.

Blue-shaded sectors were broadly flat, with movement between –1% and +1%. FPIs neither meaningfully increased nor reduced exposure.

Red-shaded sectors saw depletion of more than –1%. This indicates FPI caution driven by weaker prices, net selling, or both.

What Led to Gains in Green-Sector AUC?

• Telecom: FPIs absorbed the Singtel block sale, showing confidence in long-term sector prospects.
• Oil & Gas: Demand for RIL and downstream OMCs supported the sector.
• BFSI: Price action drove AUC higher despite NIM concerns; FPIs remain bullish on India’s financial ecosystem.
• Autos: Festive demand and GST cuts lifted sentiment.
• Capital Goods: Seen as a direct beneficiary of India's capex cycle.

These sectors share one theme: a strong domestic India story.

What Happened in the Neutral Zone?

Consumer Durables, IT, and Healthcare showed very marginal shifts. These sectors did not see significant new FPI activity, reflecting cautious outlook and subdued price action. FPIs maintained exposure but didn’t add meaningfully.

Sectors Under Pressure: The Red Group

The weakest AUC performers were Power, Consumer Services, Cement, Realty, Metals, and FMCG.

• FMCG, Realty, Consumer Services: Saw negative flows. FMCG valuations appear stretched, especially after factoring out ITC effects, while growth remains price-driven.
• Power, Cement, Metals & Mining: Correction after recent rallies pulled down AUC; selling pressure added to declines.

These sectors face both cyclical and valuation challenges - making FPIs cautious.

What FPIs Are Signalling

FPIs continue to prefer domestic-growth sectors and remain wary of dollar-sensitive plays. November showed selective optimism - but not broad-based enthusiasm.

In short, FPIs are rotating tactically, not turning aggressive.

Key Takeaways

• AUC gives a clearer picture of FPI sentiment than flows alone.
• Telecom, Oil & Gas, BFSI, Autos, and Capital Goods were clear FPI favourites.
• IT, Healthcare, and Consumer Durables stayed broadly neutral.
• Power, Cement, Consumer Services, Metals, and FMCG saw meaningful AUC depletion.
• FPIs remain selective and cautious, favouring domestic themes over global-sensitive sectors.

Disclaimer: This article is for informational and educational purposes only and should not be interpreted as investment or market advice.