Foreign Portfolio Investors (FPIs) bought financial stocks, auto stocks (cars), fast-moving consumer goods (FMCG) and industrial goods stocks in the second half of May.
Data compiled by Prime Infobase showed financial services was the top buy at 9.289 billion rupees, followed by auto stocks at 3.997 billion rupees and consumer services at 1.931 billion rupees.
FPI purchased FMCG shares worth Rs.1.571 billion and capital goods worth Rs.1.352 billion. In the second week of May, FPI purchased shares worth Rs 19.099 billion.
Analysts say FPI is bullish on financial and auto stocks as FPI earnings rely primarily on domestic demand, Indian economy outperforming relative to global peers Therefore, domestic demand is in an advantageous position.
Meanwhile, metals and mining stocks sold off worth INR 942 million, followed by information technology (IT) shares (INR 746 million), power (INR 479 million), media (INR 384 million) and media (INR 384 million). Services (366 million rupees) followed.
Despite the selloff, the IT sector became the second most important sector allocation for FPI investment, up 10% from 9.79% in the previous two weeks.
“The global economic slowdown has driven metals prices down. Recession fears make it difficult for metals to perform well in the near term,” said Cjokerlingham, founder of Equinomics Research and Advisory.・Mr. G points out.
At the end of May, financial services had the highest sectoral allocation of FPI investment at 33.74%. Allocations to oil, gas and consumable fuels decreased from 10.02% to 9.77%.