The assets under custody (AUC) is a very good measure of how the FPI interest levels are shifting. Currently foreign portfolio investors (FPIs) have about $835 billion as AUC in equities and $920 billion overall (including debt). The overall AUC had touched a peak of $1.1 trillion in September 2024 and has steadily fallen since. However, the focus here is a lot more short-term. We focus on the sectors that gained and lost AUC in Nov-25. 

1. The light green shaded sectors are the ones that have seen positive accretion in AUC, due to a combination of positive flows and favourable price moves, of over 1%. 
2. The light blue shaded sectors are the ones that have seen a neutral to very marginal shift in the AUC between October and November; between -1% and +1%. 
3. The light red shaded sectors are the ones under pressure that have seen depletion of over -1% in AUC in November; due to price fall, outflows, or both factors. 

The overall AUC of the top 17 sectors with AUC over $10 billion has not shifted much and is flat. The real shift is more granular and sector-specific. 

1. Let us focus on the positive drivers of AUC growth which are shaded in green. The sectors that have driven FPI AUC higher include Telecom, Capital Goods, Oil & Gas, BFSI and Auto. What is it that led to the positive accretion.
2. Telecom and oil & gas saw strong flows for the month along with marginal support from price accretion also. Telecom was largely about FPIs absorbing the block selling of Singtel. In case of oil, it was about demand for RIL and for downstream OMCs.
3. BFSI and Autos were less about positive flows and more about price action. In the case of BFSI, it is the domestic India story, despite NIM concerns. For autos, it has been a long story of festive demand, complemented by aggressive GST cuts.
4. Let us turn to the segment shaded in light red, which refer to the sectors that saw the pressure on FPI AUC; both due to FPI selling as well as due to negative price action. The list includes Power, Consumer Services, Cement, Realty, Metals, and FMCG.
5. FMCG, realty, and consumer services were more about negative flows. Most FMCG companies are starting look overpriced if the impact of removal of ITC on profits is factored in. Also, growth is still price driven. Others were also a demand story.
6. In the case of power, cement, metals, and mining; the impact has been more on prices as many of these segments have sold off after the recent rally. 

FPIs are still wary of dollar sensitive sectors and the focus is more on the domestic India-driven stories. However, FPI investing enthusiasm was again missing in November!