In the first fortnight of June, foreign investors left no stone unturned to spoil the mood of the stock market. According to NSDL data, foreign investors sold shares worth Rs 64,761 crore in 19 sectors in the first fortnight of June. This was the largest outflow in two weeks since the second fortnight of March. This selling was much more than the selling of Rs 14,621 crore in 13 sectors in the second fortnight of May. During this period, rising oil prices affected the sentiments of investors.
Maximum impact seen in these sectors
The financial services sector was most affected by the outflow. Foreign investors sold shares worth Rs 11,263 crore in this sector in the first fortnight of June, which shows the large weightage of this sector in the benchmark index. Between January and April, total sales of more than Rs 91,000 crore have been made from this segment. U R Bhat, co-founder and director of Alphanity, said in an ET report that when foreign investors decide to invest capital, financial services will see the highest inflow as they have significantly reduced their positions in this sector and after the correction this sector has become attractive. During this period, the second largest withdrawal of Rs 10,488 crore took place from the oil, gas and consumable fuel sector, whereas in May there was a sale of about Rs 9,000 crore.
Foreign investors created chaos in these sectors
| Sector | 1-15 june | May 2026 | January to April |
| net outflow | |||
| Financial Services | -11,263 | -23,141 | -91,685 |
| oil, Gas and Consumable Fuel | -10,488 | -8,978 | -6,391 |
| Automobiles and Components | -9,044 | -2,532 | -17,985 |
| information technology | -6,733 | -1,911 | -24,870 |
| FMCG | -5,063 | -3,561 | -18,072 |
| net inflow | |||
| Other | 629 | -1,062 | 4,803 |
| telecommunication | 373 | -415 | -16,661 |
| services | 302 | 7,204 | -4,008 |
| Utilities | 7 | -47 | -127 |
There was a lot of selling in these sectors
Siddharth Bhamre, head of institutional research at Asit C Mehta, said in the ET report that although financial services witnessed the biggest selloff, it was not huge compared to total foreign holdings. The withdrawal from the oil and gas sector was huge. Among other sectors, foreign investors sold shares worth Rs 9,044 crore in automobile and auto components and Rs 6,733 crore in information technology. Between January and April, there were withdrawals of Rs 17,985 crore and Rs 24,870 crore from these two sectors respectively. Bhamre said that selling pressure on automobile stocks was visible because their prospects are closely linked to the direction of oil prices. IT stocks also remained under pressure as concerns about Artificial Intelligence (AI) changing the revenue models of Indian technology companies resurfaced.
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