In January 2026, monthly SIP inflows into mutual funds remained strong at Rs 31,002 crore, underscoring investor confidence in long-term equity investing, according to Bajaj Broking’s latest mutual fund and Foreign Portfolio Investor (FPI) activity note. By the 10-month mark of FY26, SIP inflows have already surged to Rs 2.87 lakh crore — equivalent to 99 per cent of the total SIP contributions recorded in the entire FY25 — highlighting the sustained rise in retail participation.
The month’s SIP data suggests that domestic investors continued to prioritise systematic investing despite market volatility, keeping flows above the Rs 30,000-crore mark.
On the FPI front, January flows “reflected a distinctly risk-off and macro-driven stance, with broad-based selling across most domestic, rate-sensitive, and consumption-linked sectors amid concerns around rupee depreciation, potential tariff actions, and persistent global growth uncertainty,” the report said.
Unlike December’s selective positioning, January saw more aggressive de-risking, with investors reducing exposure to sectors closely tied to domestic demand and financial conditions. The sharpest outflows were recorded in Financial Services (Rs 8,592 crore) and Fast-Moving Consumer Goods (Rs 7,497 crore), indicating caution around valuations and sensitivity to currency and interest-rate dynamics.
Profit booking and lower allocation were seen in Healthcare (Rs 6,162 crore) and Consumer Services (Rs 5,513 crore). Broader domestic cyclicals also experienced selling, with Automobile & Auto Components (Rs 3,594 crore), Capital Goods (Rs 1,532 crore), Construction Materials (Rs 857 crore), and Telecommunication (Rs 4,777 crore) among those impacted.
Rate-sensitive and policy-linked spaces such as Realty (Rs 2,465 crore), Power (Rs 1,867 crore), and Textile (Rs 275 crore) also faced selling, while Information Technology (Rs 1,835 crore) saw withdrawals as macro uncertainty weighed on global tech demand.
There were, however, pockets of concentrated buying. Metals & Mining (Rs 11,526 crore) emerged as the standout beneficiary, followed by Chemicals (Rs 2,761 crore), driven by expected commodity price stability, export orientation and valuation comfort.
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