In the first fifteen days of November, FPIs invested ₹28,888 crore in Indian equities, of which ₹11,452 crore or 39.6%, was pumped into the financial services sector alone, the fast-moving consumer goods (FMCG) sector stands at second place, attracting equity inflows of ₹3,514 crore, followed by IT at ₹3,005 crore, Business Insider reported.
The first two weeks of November also recorded the most equity inflows of any month’s first fifteen days so far in 2022, the report noted.
|Financial Services||₹11,452 crore|
|Auto and auto components||₹3,005 crore|
|Oil, Gas & Consumable Fuels||₹2,251 crore|
|Source: Business Insider|
The high FPI inflows also align with the performance of the benchmark indices between November 1 and 15, with the Nifty50 gaining 2.2% and the Sensex gaining 1.9%, while the Nifty Bank index gained 2.6%, with two public sector banks among the top five performers.
The report said that India's 12 public sector banks reported a cumulative net profit of ₹25,685 crore in Q2, resulting in rating upgrades from brokerages.
"September quarter earnings have been good banks have done extraordinarily well. Credit growth is picking up for each and every bank, which means there will be investments. "If the capex cycle starts, there will be growth in the future, so these are positive indicators," Sharad Chandra Shukla, director, Mehta Equities, told Business Insider India.
He added that unless there are other geopolitical triggers or the US Fed decides to do another 75 bps rate hike, the FPI buying trends should continue in the near term.
In terms of assets under custody (AUC), too, the financial services sector dominated the FPI allocations, with a share of 32% out of the total ₹49 lakh crore worth of equity investments as of November 15, 2022, according to the report.
Meanwhile, the recent performance of PSU banking stocks has positioned the Nifty PSU Bank index as the top-performing index among all NSE indices in 2022. Since the beginning of the year, the index has risen approximately 1,477.15 points, moving from 2,530.40 to 4,007.55, gaining nearly 58.37% of its value.
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