loader2
Login Open ICICI 3-in-1 Account

Open ICICI
3-in-1 Account

Manage your Savings, Demat and Trading Account conveniently at one place

+91

BLOG

FIIs net shorts near a year high, short covering expected ahead of crucial budget next week

ICICIdirect Research 23 Jan 2026 DISCLAIMER

Foreign Portfolio Investors (FPIs) have been decisive sellers in the first half of January 2026, leading to total month-to-date outflows of approximately ₹26,500 crore so far.

Among sectors, BFSI (3.2k Cr) and IT (2k Cr), FMCG (6k Cr) saw major outflows. Additional “Sin Tax” for tobacco companies has triggered significant outflows in companies like ITC which might have been the reason for such outflow.

While most of the sectors witnessed outflows, metals have been an outlier and saw inflows in the north of 2.5 Cr in the first half of January month. However, the selling was comfortably absorbed by strong domestic liquidity, as DIIs injected over ₹35,000 crore into the market, providing a crucial floor to the benchmark indices.

Download ICICI Direct app

Invest, Track, and Manage your Portfolio Anytime, Anywhere

Download ICICI Direct app

Invest, Track, and Manage your Portfolio Anytime, Anywhere