Foreign investors stayed net sellers of Indian equities in April, but the outflow pace eased sharply versus March. FIIs shifted to buying in power, capital goods and metals, while financial services, healthcare, oil & gas and automobiles saw continued heavy selling pressure. The divergence points to sector-specific bets as global uncertainty persists.
Devina Mehra of First Global says Indian equities are moving through a bottoming zone, urging investors to stay invested rather than exit on earnings disruptions. She expects sector rotation to continue and forecasts 2026 to be better than 2025. Mehra flags power as a key growth theme and argues IT is evolving, not dead.
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Indian markets inched higher as auto stocks supported the index while IT and pharma weighed on sentiment. GMDC stood out among the biggest gainers, joining Netweb and MosChip in sharp moves attributed to earnings, market bids, and sector rotation. On the other side, Apollo Micro, SpiceJet, and Vedanta slipped amid earnings pressure and bid or demand concerns.
PSU mutual funds recorded Rs 4,498 crore in outflows in March, a modest improvement from February, per Vallum Capital. Despite solid long-term performance, sector flows were uneven: consumption saw withdrawals, while manufacturing, infrastructure, defence and pharma pulled in fresh money—hinting investors are rotating toward domestic capex themes even as broader sentiment stays cautious.
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