financial services: Financial services faces heavy FPI selloff

Mumbai: Shares of financial services companies recorded the highest selling by overseas funds across sectors in the second-half of April. Foreign portfolio investors (FPIs) dumped shares in the sector worth ₹12,550 crore between April 16 and April 30 after purchases worth ₹3,212 crore in the first half of the month, as per data from National Securities Depository Ltd (NSDL). The sector received inflows worth ₹52,900 in 2023.

FPIs sold shares worth ₹27,140 crore across 14 sectors in April 16-30 period. Other than financials, information technology (IT), fast- moving consumer goods (FMCG) and oil & gas sectors were among the sectors that witnessed large outflows.

The IT sector witnessed profit booking by foreign investors worth ₹4,915 crore between April 16 and 30, after outflows worth ₹4,658 crore in the first-half of the month. They offloaded shares worth ₹3,563 crore and ₹1,443 crore in FMCG and oil & gas, respectively.

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Power and healthcare sectors saw foreign outflows worth ₹834 crore and ₹768 crore, respectively, after witnessing inflows worth ₹5,143 crore and ₹61 crore in the first-half of the month.

In the last 15 days of April, foreign investors turned net sellers worth over ₹500 crore in automobiles, construction, and metals sectors among others.Overseas investors bought Indian equities worth ₹13,060 crore across 9 sectors in the second-half of April. These investors demonstrated renewed buying interest in India’s telecom sector with an investment of ₹6,619 crore for the period between April 16 and 30 after buying shares worth ₹1,659 crore in the first-half of the month. The sector received foreign funds worth ₹7,967 crore in March.They continued to infuse funds in capital goods and services stocks in the second-half of the month worth ₹2,408 crore and ₹1,764 crore respectively, while the sector earmarked ‘Others’ received ₹1,348 crore.

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