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Business News/ Markets / Stock Markets/  FPIs sold FMCG, auto, financial services stocks the most in second half of March; bought telecom, capital goods shares
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FPIs sold FMCG, auto, financial services stocks the most in second half of March; bought telecom, capital goods shares

FPIs bought Indian equities worth ₹40,710 crore in the first 15 days of March, while they were net sellers to the tune of ₹5,612 crore in the second half of the month, as per data from National Securities Depository Ltd (NSDL).

FPI inflows into domestic equities persisted into April, with both the Indian stock market indices, Sensex and Nifty 50, reaching new record highs. (Photo: AP)Premium
FPI inflows into domestic equities persisted into April, with both the Indian stock market indices, Sensex and Nifty 50, reaching new record highs. (Photo: AP)

The Foreign Portfolio Investors (FPI) infused a little over 35,000 crore in Indian equities during the month of March 2024, marking a significant uptick from the investment of 1,539 crore in February. This surge follows a substantial outflow of 25,744 crore witnessed in January.

Looking into the trends in FPI flows last month, data shows overseas investors bought Indian equities worth 40,710 crore in the first 15 days of March, while they were net sellers to the tune of 5,612 crore in the second half of the month, as per data from National Securities Depository Ltd (NSDL).

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Between March 16 and 31, FPI inflows were seen the most in the Telecommunications sector at 1,319 crore, after investment worth 6,648 in the first half of the month.

This was followed by FPI investment of 951 crore in the Capital Goods sector and 931 crore in Metals & Mining during the second half of March. Chemicals and Realty sectors saw FPI inflows worth 868 crore and 846 crore, respectively, during the same period.

On the contrary, the fast-moving consumer goods (FMCG) sector saw the highest FPI selling in the second half of March, data showed. FPIs offloaded shares worth 4,939 crore in the FMCG sector after buying worth 11,180 crore during the first half of the month. FPI outflows in the FMCG sector stood at 4,472 crore in February.

The Automobile and Auto Components sector also saw FPI selling worth 2,085 crore during March 16 - 31, after inflows worth 3,697 crore in the first half of the month. Financial Services witnessed outflows of 1,900 crore and Consumer Durables at 1,175 crore in the second half of the month.

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FPIs continued to dump Oil, Gas & Consumable Fuels sector shares worth 1,169 crore after selling 1,110 crore in the first half of the month. Meanwhile, the Information Technology (IT) sector saw a total FPI outflow of 1,659 crore during the month of March.

Going ahead, hotter-than-expected US inflation has spiked the US bond yields, which is negative for FPI inflows.

However, V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services expects this is unlikely to impact the Indian stock market which is resilient, and the rally is driven mainly by domestic liquidity. 

“Dips are likely to get bought imparting strength to the market. Therefore, investors may use the dips to buy high-quality largecaps where the margin of safety is high," Vijayakumar said.

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Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.

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Published: 12 Apr 2024, 01:31 PM IST
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