During May 2025, institutional investors shifted their priorities in the market. Both DIIs and FIIs are heavily invested in the telecommunication sector, apart from their all-time favorite financial services sector. In this article will see the investments made by DIIs and FIIs across sectors to understand which sectors are trending and which institutional investors are betting on.
Overall Investment Growth
During May 2025, the total of institutional investment went up to ₹78500 crore, mostly driven by block deals, and this is the highest since September 2024. FIIs’ overall investment stood at ₹21445 crore during May 2025, and the domestic institutional investors, including mutual funds, invested over ₹57000 crore.
Sector-Wise Investment in May
According to reports, mutual funds invested significantly in the telecom sector during May. In total, they invested around ₹5730 crore while FIIs invested ₹8089 crore in the telecom sector.
That said, financial services remain at the top of both DIIs’ and FIIs’ choice as they invest ₹17370 crore and ₹4028 crore respectively.
The service sector stocks gave tough competition to financial services as investments by foreign institutions rose to ₹7972 crore while mutual funds invested Ra.4061 crore.
FMCG stocks also pulled significant investment during May 2025. Domestic institutions, including mutual funds, invested ₹10213 crore themselves; however, FIIs invested ₹815 crore only in this sector.
While these sectors witnessed an uptrend in institutional investments, the healthcare sector saw a decline. FIIs sold investments worth ₹2614 crore; however, mutual funds remained net buyers in the sector with ₹3029 crore of inflow.
Sector-wise Investment Details
| Sector | Investments By Mutual Funds (₹ Crore) |
| Financial Services | 17371 |
| Consumer Discretionary | 14484 |
| FMCG | 10213 |
| Telecommunication | 5730 |
| Services | 4061 |
| Healthcare | 3029 |
| Utilities | 2163 |
| Energy | 258 |
| IT | 32 |
| Diversified | 10 |
| Industrials | (686) |
| Commodities | (930) |
| Sector | Investments By FIIs (₹ Crore) |
| Telecommunication | 8089 |
| Services | 7972 |
| Capital Goods | 5327 |
| Financial Services | 4028 |
| Oil & Gas | 2520 |
| Chemicals | 1308 |
| FMCG | 815 |
| Realty | (1664) |
| Consumer Durables | (1734) |
| IT | (2436) |
| Power | (2494) |
| Healthcare | (2614) |
Broad Market Indices
The benchmark indices also witnessed a bullish trend during May 2025 as the inflows poured in. The BSE Sensex grew by 1.73% during May 2025, while the Nifty 50 increased by 2.05%. The broad market index, BSE Midcap increased by 5.6% in May, while BSE SmallCap surged 10.4% in May.
Wrapping Up
As per analysts, this uptick in institutional investments is here to stay, with more bulk deals, block deals, and offers for sale by promoters coming in. It will be interesting to see how the market turns out from here and how DIIs and FIIs invest in it.
Source: MoneyContol
______________________________________________________________________________________
Disclaimer: Investments in the securities market are subject to market risks; read all the related documents carefully before investing.