scorecardresearchStocks from these 3 sectors grab over 90% of FPI inflows in June: Report

Stocks from these 3 sectors grab over 90% of FPI inflows in June: Report

Updated: 22 Jun 2023, 10:55 AM IST
TL;DR.

A recent report by Economic Times highlighted that almost 92 percent of FPIs inflow between June 1 and 15 went into just three sectors: financial services, capital goods, and auto.

A recent report by Economic Times highlighted that almost 92 percent of FPIs inflow between June 1 and 15 went into just three sectors: financial services, capital goods, and auto.

A recent report by Economic Times highlighted that almost 92 percent of FPIs inflow between June 1 and 15 went into just three sectors: financial services, capital goods, and auto.

Foreign portfolio investors (FPIs) continued to buy shares of Indian banks, NBFCs, capital goods, auto, consumer durables, construction, and healthcare in the first half of June. They turned fresh buyers in shares of construction materials companies in this period.

A recent report by Economic Times highlighted that almost 92 percent of FPIs inflow between June 1 and 15 went into just three sectors: financial services, capital goods, and auto, which have been favourites of overseas fund managers since the beginning of the year.

As per the ET report, FPIs bought banks and financial services shares worth 5,523 crore during this period as Indian banks are seeing the best-ever asset quality in the past ten years. According to India Ratings & Research, public sector banks' gross non-performing assets declined to 5 percent in FY23 from a peak of 14.1 percent in FY18, while that of private banks reduced to 2.3 percent from 6.3 percent, it added.

Meanwhile, FPIs bought capital goods and auto stocks worth 3,460 crore and 3,079 crore, respectively, informed ET.

It also noted that these investors have been buyers of capital goods shares for 13 out of the previous 14 months, amid the re-rating of the sector.

However, FPIs remained net sellers in IT stocks in this period for the third consecutive month, selling IT shares worth 3,139 crore in the first fortnight of June and overall 15,848 core since March 1, 2023, as investors have been cautious about the sector's prospects because of slowdown fears in developed economies, the report mentioned. The Nifty IT index gained just 4 percent in the last one year compared to the Nifty's 22 percent gain.

It also added that FPIs have sold metal and mining shares also worth 2,243 crore between June 1 and 15.

 

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FPI investment in India hits 9-month high in May
First Published: 22 Jun 2023, 10:55 AM IST