Mumbai: Foreign Portfolio Investors (FPIs) turned buyers in the Indian equity market in second half of November. Data from National Securities Depository Limited (NSDL) showed this.
As per data, FPI inflows into Indian equities amounted to Rs 808 crore between November 16 and November 30. In the first fortnight of the month they sold Indian shares worth Rs 22,420 crore. The net FPI selling in November amounted to Rs 21,612 crore. In October, FPIs had offloaded Indian equities worth a record Rs 94,017 crore.
As a result, the assets under custody (AUC) of FPIs saw a marginal increase, rising to Rs 71.88 lakh crore in November from Rs 71.08 lakh crore in October.
FPIs turned bullish on the Financial Services sector during the second half of November, infusing Rs 9,597 crore. This marked a significant reversal from the Rs 7,092 crore outflow recorded during the first half of the month and the Rs 26,139 crore outflow in October.
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The Information Technology sector also saw robust FPI interest, with inflows of Rs 2,429 crore between November 16-30, building on the Rs 3,087 crore inflow during the first half of the month.
The Fast-Moving Consumer Goods (FMCG) sector followed with inflows worth Rs 2,184 crore in the latter half of November, recovering from outflows of Rs 3,589 crore in the first half. The Realty sector witnessed consistent FPI inflows, receiving Rs 1,367 crore in the second half, in addition to the Rs 694 crore inflow during the first half of the month.
The Oil, Gas & Consumable Fuels sector witnessed FPI outflows, with equities worth Rs 6,132 crore sold in the second half of November, adding to the Rs 7,214 crore offloaded during the first half. The total outflow from the sector for November stood at Rs 13,346 crore. The Automobile and Auto Components sector continued to face significant selling pressure, with FPIs withdrawing Rs 3,053 crore in the second half, following Rs 4,411 crore outflows in the first half and Rs 10,440 crore in October. The Telecommunication sector experienced FPI outflows of Rs 2,942 crore between November 16-30, on top of the Rs 2,136 crore sold during the first half of the month.
In the Construction Materials sector, FPIs offloaded equities worth Rs 1,913 crore in the second half, following Rs 802 crore in early November and Rs 3,440 crore in outflows during October.
Foreign institutional investors (FII) or Foreign portfolio investors (FPI) are those who invest in the financial assets of a country while not being part of it. On the other hand, Domestic Institutional Investors (DII) are those who invest in the country they are living in. Both types of investors can impact the economy’s net investment flows.
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