The month of April witnessed contrasting investment behaviors between Mutual Funds (MFs) and Foreign Institutional Investors (FIIs) across various sectors. Analyzing their sector-wise preferences reveals intriguing trends that reflect differing perspectives and strategies.
Starting with the Information Technology (IT) sector, Mutual Funds were strong buyers with investments worth 9,598 crores. However, FIIs significantly reduced their exposure to the same sector, withdrawing 15,213 crores, FIIs likely sold due to the Trump Tariff. Many Experts Warned that due to Tariffs, the US is likely to enter in Recession, and Most Indian IT companies depend on the US and the US economy
Financial Services emerged as another point of contrast. MFs invested 4,451 crores in the sector, while FIIs poured in an even more impressive 18,409 crores. This buying comes due to strong Results by Banking Legends like ICICI Bank and HDFC Bank, and Rate Cut Boost optimization. Most Banks declared better than expected Results,Asset Quality improving, and Net Interest Margins improving.
Industrials, Commodities, and Healthcare also attracted domestic interest, with MF investments of 3,340 crores, 3,107 crores, and 2,134 crores, respectively. On the contrary, FIIs exited these sectors with net outflows, particularly in Healthcare, which saw an FII sell-off of 728 crores.
Interestingly, the FMCG (Fast Moving Consumer Goods) and Telecommunication sectors saw contrasting movements. Mutual Funds divested 2,212 crores from FMCG and 2,787 crores from Telecommunication. Meanwhile, FIIs invested heavily in both — 2,917 crores in FMCG and 4,648 crores in Telecommunication.
Smaller sectors such as Services, Energy, and Utilities received minor investments from MFs, while FIIs either reduced or made negligible changes in these areas. Notably, FIIs showed interest in Chemicals, Power, and Consumer Services, investing 875 crores, 907 crores, and 1,797 crores, respectively — areas where MFs were relatively inactive.
Disclaimer:
The information provided in this article is for informational and educational purposes only and does not constitute financial advice, investment recommendations, or an offer to buy or sell any securities.
