Foreign portfolio investors (FPIs) have sold off shares amounting to Rs 20,000 crore across 13 sectors between September 1st and 15th, according to data from the National Securities Depository. The sectors affected by this significant divestment include mining, metals, oil and gas, power, telecom, and construction materials.
The metals and mining sector experienced a notable sell-off as FPIs sold shares worth Rs 4,556 crore in the first half of September. This came after they offloaded shares valued at Rs 7,000 crore in August. Another sector witnessing a similar trend is power, with FPIs selling shares worth Rs 4,153 crore, after an allocation of Rs 11,563 crore in August.
Additional sectors where FPIs reduced their holdings include services (Rs 3,706 crore), oil and gas (Rs 2,687 crore), and telecom (Rs 1,204 crore).
Despite this extensive sell-off across various sectors, the banking, financial services, and insurance (BFSI) sector saw renewed interest. FPIs invested Rs 6,400 crore in the BFSI sector after a similar amount was sold in August. This infusion led to a nearly 1.5% gain for the Nifty Bank and Nifty Financial indices over the past month.
Capital goods stocks continued to attract FPI attention for the eighth month in a row with investments totaling Rs 3,569 crore in the first half of September. This consistent interest is backed by a significant growth in order books for capital goods companies. The backlog of orders for the top 30 engineering and construction firms surged by 12% to $161 billion in the June quarter. This surge was largely driven by substantial orders from railway and road construction sectors.
In addition to the BFSI and capital goods sectors, information technology (IT) companies also witnessed a shift in FPI sentiment. FPIs invested Rs 1,438 crore in IT shares during the first half of September, following an investment of Rs 4,088 crore in August. This marked a significant change from the previous seven months when they withdrew Rs 15,800 crore from IT stocks. Throughout 2022, FPIs sold IT shares valued at Rs 71,400 crore.
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