Defensive and Domestic-Focused Stocks Likely to Benefit from FPI Outflows

The sharp pullout of nearly $2.7 billion by Foreign Portfolio Investors (FPIs) in September has put pressure on frontline indices, especially in sectors like IT, financials, and large-cap cyclicals where foreign ownership is typically high. However, this shift in sentiment often creates relative advantages for companies with strong domestic demand drivers and lower foreign shareholding. Stocks such as

, , and in the FMCG space tend to attract stability-seeking investors during times of foreign outflows. Similarly, Power Grid Corporation and , with their government backing and regulated earnings, remain resilient bets as they are less dependent on global capital flows. On the financial side, and ICICI Bank, despite facing near-term selling, continue to benefit from strong retail loan growth and are likely to see renewed inflows once FPI pressure eases. Overall, while heavy FPI withdrawals may weigh on broader indices, defensive FMCG majors, PSU utilities, and quality private banks with strong domestic fundamentals stand to benefit as investors reallocate towards safer, internally driven growth stories.