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Sectors FPIs Bought And Sold In The First Half Of December

FPIs bought Rs 9,090-crore Indian equities in the first half of December, driven by capital goods and materials sectors.

<div class="paragraphs"><p>(Source: Unsplash)</p></div>
(Source: Unsplash)

The foreign institutional investors continued to flock into Indian Indian equities in the first half of December, driven by the buying in capital goods and the materials sector, according to an Emkay Global report.

Overseas investors net bought Rs 9,090 crore worth of equities in the first half of December. Inflows continue from November when foreign portfolio investors pumped in Rs 36,238 crore in the country's equity markets in November, buying the most at Rs 9,010 crore on Nov. 30.

The buying since November, however, doesn't offset the selloff that took place in the previous months. Overseas investors, according to NSDL data, have withdrawn Rs 1.21 lakh crore from Indian stocks far this year.

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Sector-Wise Inflow

The largest inflow was seen in the capital goods sector at $395 million or Rs 3,269 crore, according to the Emkay report. The eleventh consecutive fortnightly inflow brought the total investments in the last six months to more than $2.3 billion or Rs 19,036 crore in the sector.

On the other hand, the energy sector saw the largest outflow at $270 million or Rs 2,234 crore. Small outflows of about $25 million or Rs 206 crore were seen from the financial services sector.

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Software And Services  

The sector saw an outflow of $159 million or Rs 1,316 crore between Dec. 1 and Dec. 15, with Nifty IT falling more than 5%.

"After gaining 15% since October, this fall could be a buying opportunity in IT stocks if FIIs return to the trend of inflows seen in the previous 3 fortnights," Emkay Global said in its report.

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Materials

The sector saw an inflow of $245 million or Rs 2,027 crore. It was the third consecutive fortnight of inflow, increasing the Nifty Metal Index by 15% since October and raising the sector’s weight in the FPIs' assets under management from 6.9% to 7.4%.

"Profit booking in large-cap, metals, cements, and chemical stocks can be expected," Emkay Global said in its report.

Energy 

The sector saw the largest outflow at $270 million or Rs 2,234 crore. Nifty Energy gained around 3% during the fortnight.

"The outflow seems to be driven by a 17% fall in Adani Transmission and an 8% fall in Adani Green," Emkay Global said in its report.

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FMCG  

The sector saw an inflow of $321 million or Rs 2,656 crore, taking the total inflow for the sector in 2022 to more than $1.5 billion or Rs 12,415 crore.

"FIIs' inflow could continue in the sector to cover the difference, and the sector could outperform in the next few fortnights," Emkay Global said in its report.

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