foreign funds: Capital Goods, BFSI and IT top draws for foreign funds

Mumbai: Foreign portfolio investors sold shares worth ₹20,000 crore across 13 sectors between September 1 and 15, according to data from the National Securities Depository (NSDL). Mining, metals, power, oil and gas, telecom, and construction materials are among the sectors that saw foreign investors booking profits.

After selling metals and mining shares worth ₹7,000 crore in August, FPIs offloaded another ₹4,556 crore worth of shares in the sector. Overseas investors also sold power shares worth ₹4,153 crore after they allocated a dominant ₹11,563 crore to the sector stocks in August.

In addition, FPIs have offloaded shares in other sectors, including services valued at ₹3,706 crore, oil and gas shares totalling ₹2,687 crore, and telecom shares amounting to ₹1,204 crore.

FPIs pumped ₹6,400 crore into BFSI (Banking, Financial Services, and Insurance) stocks after selling a similar amount in August. Nifty Bank and Nifty Financial indices gained nearly 1.5% in the past month.

They extended their buying streak in capital goods stocks for the eighth consecutive month, lapping up shares worth ₹3,569 crore in the first half of September. Capital goods firms are seeing an unprecedented surge in order books. The order backlog of the top 30 engineering and construction (E&C) companies rose 12% to $161 billion in the June quarter, driven by large orders from railway and road construction sectors.

FPIs also bought shares of information technology (IT) companies worth ₹1,438 crore during this period after investing ₹4,088 crore in August. This shift in sentiment comes after they pulled ₹15,800 crore out of IT stocks between January and July. In 2022, they sold IT shares worth ₹71,400 crore.

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