FIIs end four-month sell-off: Consumer durables stocks back in favour

Subscribe to enjoy similar stories. Foreign institutional investors (FIIs) reversed the four-month selling streak in December, turning net buyers of Indian consumer durable stocks with purchases worth $438 million. “This reversal may mark the beginning of a more substantial reallocation of global funds towards Indian domestic themes," said Vipul Bhowar, senior director and head of equities, Waterfield Advisors.

The main reason for the bullish outlook is the expected increase in earnings in the second half of fiscal year 2026, he said. Many companies are projected to see a 20–30% rise in profit after tax (PAT), fuelled by strong festive-season sales and reduced raw material costs. While valuations may have limited upside, the earnings growth in these companies could surpass expectations, said Bhowar.

The renewed buying interest from foreign investors comes after the sector’s recent underperformance. The BSE Consumer Durables index fell about 1% over the past year, lagging the 12% rise in Nifty 50. Performance within the sector has also been sharply divergent.

Stocks such as Asian Paints, Titan Co. and Berger Paints India have gained between 11% and 25% over the past year, while the likes of Blue Star, Havells India, Voltas, Dixon Technologies India, Amber Enterprises India and PG Electroplast have declined 9-32%. The recent reversal in FII flows into consumer durables follows a sharp derating in sector valuations over the past six to seven months, said Manish Valecha, co-head of research, Anand Rathi Institutional Equities.