New Delhi, April 14 -- MUMBAI: Foreign portfolio investors (FPIs) pulled out a record Rs.1.8 trillion from Indian equities in FY26, according to data Centre for Monitoring Indian Economy (CMIE), but the headline outflow masks a more targeted shift. Rather than a broad exit, investors pared exposure to IT, defensives and parts of consumption, while selectively adding to sectors tied to India's capital expenditure cycle.

A Mint analysis of sectoral flows shows that even as overall selling remained elevated, capital moved towards capital goods, telecom, and metals, signalling a narrower, conviction-led allocation rather than a wholesale retreat from the market. The shift reflects diverging earnings visibility between export-facing sectors a...