What Led to FII Inflows in October? BFSI and Oil & Gas at the Forefront
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Synopsis
In October, foreign institutional investors showed a bullish sentiment as net buyers, particularly in the BFSI and Oil & Gas sectors. This article explores the dynamics of FII inflows and outflows, revealing key insights into the market trends that shaped the month.
Key Takeaways
- BFSI and Oil & Gas sectors led FII inflows in October.
- FII and DII net buying reached $1.3 billion and $6.0 billion.
- FMCG sector faced the highest outflows at $482 million.
- The NSE Midcap index rose by 4.8 percent.
- Nifty trading above 20 times FY27 estimated earnings.
Mumbai, Nov 11 (NationPress) In October, foreign institutional investors (FIIs) emerged as net buyers once again, with the BFSI (banking, financial services, and insurance) and Oil and Gas sectors taking the lead by attracting investments of $1,501 million and $1,030 million, respectively, according to a report released on Tuesday.
During the same month, both FIIs and domestic institutional investors (DIIs) were net buyers, amounting to $1.3 billion and $6.0 billion respectively, as the Nifty index rose by 4.5 percent, the report from JM Financial Institutional Securities indicated.
Key sectors that witnessed significant FII inflows included metals, telecom, auto, and power, which recorded inflows of $355 million, $243 million, $110 million, and $109 million respectively, as noted in the report.
On the flip side, the FMCG sector faced the highest outflows, totaling $482 million, followed by services at $391 million, pharma at $351 million, IT at $248 million, durables at $198 million, and chemicals at $105 million.
FIIs' equity holdings in India show that the BFSI, auto, IT, oil & gas, and pharma sectors account for nearly 60 percent of FII assets under custody (AUC), the report stated.
The BFSI sector continues to dominate, holding 31.7 percent of FII AUC, according to the analysis.
The report also highlighted that there was a sequential increase in BFSI and IT, whereas auto and oil and gas saw a decline. The pharma sector remained unchanged.
Indian equities made a strong recovery in October, with the Sensex and Nifty both up over 4 percent, bolstered by FII inflows and improved domestic sentiment.
The real estate sector showed the best performance, while oil & gas, metals, banks, and IT outperformed the Nifty, even as healthcare, power, FMCG, and autos lagged behind.
The NSE Midcap index rose by 4.8 percent and the BSE Smallcap index gained 3.2 percent.
Currently, the Nifty is trading at over 20 times the estimated earnings for FY27, slightly above the average PE ratio for the last 10 years.
Point of View
I observe that the resurgence of FII investment in India, particularly in the BFSI and Oil & Gas sectors, reflects growing confidence in our economy. This trend is crucial for sustaining market stability and growth in the face of global uncertainties. With the Indian equities on the rise, we remain committed to providing insights that empower our readers to navigate these changes.
NationPress
04/01/2026
Frequently Asked Questions
What sectors attracted the most FII inflows in October?
The BFSI and Oil & Gas sectors attracted the most FII inflows in October, with investments of $1,501 million and $1,030 million respectively.
What was the performance of the Indian equities market in October?
In October, Indian equities showed strong recovery, with the Sensex and Nifty both increasing by over 4 percent.
Which sector experienced the highest outflows?
The FMCG sector experienced the highest outflows, totaling $482 million.
How much did the NSE Midcap and BSE Smallcap indices rise?
The NSE Midcap index rose by 4.8 percent, while the BSE Smallcap index gained 3.2 percent.
What percentage of FII assets does the BFSI sector hold?
The BFSI sector holds approximately 31.7 percent of FII assets under custody in India.
