On the other hand, domestic institutional investors (DIIs) were mostly buyers in the consumer sector.
Of the 16 FMCG firms that were analysed, 11 companies saw a decline in their respective overseas investors' holding in the three months ended March 30 over the preceding quarter, while four witnessed an increase in FIIs stake, according to a report by A C Choksi Share Brokers.
Besides, FIIs stake in ITC remains unchanged in January-March quarter from the preceding three months.
Giving reasons for avoidance of FMCG stocks by FIIs, market experts said these counters have become very expensive in terms of valuation.
Apart from Colgate, Dabur and Emamai, FIIs initiated fresh sell positions in Godrej Consumer Products Ltd (GCPL), Asian Paints, Berger Paints, United Spirits, Zydus Wellness, Marico, Hindustan Unilever Ltd (HUL) and GSK Consumer Healthcare during the quarter under review, the report said.
In contrast, FIIs have offloaded shares of Bajaj Corp, Nestle, Jyothy Laboratories and Britannia.
"...DIIs are selectively bullish on consumer stocks while FIIs are reducing their holding in the sector. However, as FIIs remained consistent in increasing their holding in Britannia and Nestle, we deduce that they are bullish on processed food consumption story," the report added.