IT stocks see highest FPI selling worth ₹9,573 crore in April; Financials follow with ₹9,338 crore outflow
- FPIs sell ₹8,671 crore of Indian equities in April, concentrating on IT, financials, and FMCG shares. They continue buying in Telecom and Capital Goods sectors. Overall, FPI equity portfolio in India rose to ₹66.27 lakh crore by April 30.
The Indian stock market is witnessing sharp correction with the benchmark Nifty 50 falling nearly 3% from its record high level. Weak global market cues, cautiousness amid ongoing Lok Sabha Elections, in-line corporate earnings for the March quarter and sustained outflow of foreign funds have dragged the domestic equity market lower.
The foreign portfolio investors (FPI) have turned net sellers in the Indian equities this year so far. After buying heavily in March, FPIs net sold Indian equities worth more than ₹8,600 in the month of April. As per the data available on National Securities Depository Ltd (NSDL), FPI selling in Indian equities during April stood at ₹8,671 crore and ₹5,076 crore in May so far.
FPIs selling worth ₹14,079 crore in Indian equities was seen between April 16 and 30, as against inflows of ₹5,408 crore in the first half of the month.
Also Read: FPIs turn net sellers worth ₹8,671 crore in April after 2 months of buying; will the trend continue?
A large chunk of FPI selling was concentrated in IT services, financials and FMCG shares last month, the NSDL data showed. In the second fortnight of April, i.e. between April 16-30, FPIs sold ₹4,915 crore worth shares in the Information Technology (IT) sector. This comes after an outflow of ₹4,658 crore in the first half of the month. Thus, FPIs dumped a total of ₹9,573 crore worth IT stocks in April.
This was followed by the Financials sector which saw a heavy FPI selling worth ₹9,338 crore during the month. FPI offloaded financial shares to the tune of ₹12,550 crore between April 16 and April 30 after buying worth ₹3,212 crore in the first half of the month, data showed.
Robust FPI selling was also witnessed in Fast Moving Consumer Goods (FMCG) and Oil & Gas sectors. They dumped FMCG shares worth ₹7,914 crore, and Oil & Gas shares worth ₹2,366 crore. Between April 16 and 30, FPI outflows in the FMCG and Oil & Gas sectors stood at ₹3,563 crore and ₹1,443 crore, respectively.
Also Read: FPIs continue buying cyclicals like capital goods, auto stocks while selling defensives in April
On the contrary, overseas investors continued their buying momentum in Telecommunications and Capital Goods sectors in the second half of April.
FPI investment in India’s telecom sector stood at ₹8,278 crore in April as infused ₹6,619 crore between April 16 and 30 after buying shares worth ₹1,659 crore in the first-half of the month.
The Power sector saw FPI outflows worth ₹834 in the second half of the month after witnessing strong buying to the tune of ₹5,143 crore between April 1-15. Total FPI inflows in the Power sector last month was at ₹4,309 crore.
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Moreover, FPIs infused a total of ₹3,636 crore in the capital goods sector in April. FPI inflows in the sector during the first half of the month stood at ₹1,228 crore followed by ₹2,408 crore in the second half.
The Automobile and Auto Components sector saw FPI buying to the tune of ₹1,119 crore in April.
Overall, asset under custody (AUC), or equity portfolio of FPIs in the Indian equity market rose to ₹66.27 lakh crore as of April 30 from ₹64.15 lakh crore as of March 31, 2024.
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