However, the unlucky one was financial services, as stocks in this sector continued to be dumped by the big bulls.
The highest inflows was in the consumer services sector at Rs 7,538 crore, which is more than eight times higher than the inflows of Rs 918 crore seen in January, according to data by NSDL.
The automobiles and auto components sector was second in the queue, witnessing inflows of Rs 5,542 crore. This is against the net outflows of Rs 2,067 crore seen in January.
The healthcare sector saw third highest inflows of around Rs 5,200 crore last month, against outflows of Rs 362 crore in January.
The capital goods and IT sector also got lucky, getting inflows of Rs 3,906 crore and Rs 2,197 crore, respectively in February.
Which sectors were unlucky?
The five sectors that faced the blow from FPIs were financial services, construction, fast moving consumer goods, oil and gas, and telecommunications, witnessing outflows of more than Rs 26,400 crore in February. The sector to be hit the most for the second consecutive month was financial services, as it saw outflows of Rs 9,977 crore in February. This was, however, far lesser than the outflows of more than Rs 30,000 crore seen in January.
The next in the line were construction and fast moving consumer goods, with both the sectors seeing net outflows of Rs 4,494 crore and Rs 4,472 crore, respectively last month.
The outflows in the FMCG sector in February was much higher than that in January at Rs 2,650 crore.
The other sector where FPI selling intensified last month was telecommunications, as it saw net outflows of Rs 3,933 crore in February, compared to just Rs 84 crore worth of outflows in January.
FPIs, which were buyers in the oil and gas sector in January, turned sellers last month. They net sold shares worth Rs 3,543 crore in February, after buying shares worth Rs 3,467 crore in January.
What’s likely in March?
Equities may witness a volatile March as selling is likely to persist in the broader market and as year-end redemption pressures could see domestic mutual funds liquidating positions.
In the last two months, FPIs net sold equities worth Rs 29,198.4 crore in the secondary market, with a majority of it in January.
Crucial factors such as the geopolitical situation, movement in the US bond yields, dollar, and cues around US Federal’s future policy action will determine the inflows in the near term, said experts.
From a sectoral perspective, Pradeep Gupta, co-founder and vice-chairman, Anand Rathi Group is cautious on capital goods, engineering, infrastructure, and realty sectors as they face headwinds from regulatory challenges, cyclical demand fluctuations, and investment cycles.
“Investors may consider reallocating resources from these sectors to capitalize on opportunities in more promising areas, aligning their portfolios with emerging trends and risk-return profiles,” Gupta said.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)