Which sectors are witnessing FPI selling in June? Here’s a hint

NEW DELHI: The value of Indian stocks held by foreign investors has fallen by about Rs 2.61 lakh crore or 6.3 percent to Rs 41.51 lakh crore in the two weeks ending June 15, compared to Rs 44.12 lakh crore in the two weeks ending May 31, in line with weakness in the broader market.

The month has so far sold FPIs over Rs 40,000 crore of domestic equities with outflows of Rs 24,949 crore in the first half of the month alone.

Data available from NSDL showed that sales of FPIs increased in sectors such as financial services, consumer discretionary, FMCG, metals and mining, among others. The oil and gas and chemicals sectors continued to see FPI buys, but the energy sector that saw FPI buy over the past two weeks witnessed sales during the fortnight ended June 15.

Financial services sales have continued with FPIs pulling out a net Rs 8,050 crore worth of shares in the two weeks ending June 15. This was higher than the outflow of Rs 3,894 crore in the past two weeks ended May 31.

Overall, FPIs’ exposure to financials stocks has fallen by Rs 1.08 lakh crore to Rs 12.85 lakh crore from Rs 13.94 lakh crore in the past two weeks, down 8.4 percent .

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IT, another sector where FPIs have massive exposure, saw their holding value fall 7 percent to Rs 5.09 lakh crore from Rs 5.45 lakh crore. The outflow of FPI for this sector in the past two weeks was Rs 3,702 crore which was less than the outflow of Rs 10,506 crore in the past two weeks.

FMCG was another sector, which saw a decline in FPI exposure in terms of value. FPIs had Rs 2.58 lakh crore in FMCG shares against Rs 2.78 lakh crore in the past two weeks. FPIs sold Rs 1,523 crore worth of FMCG shares in the first two weeks of June, which was higher than the outflow of Rs 1,093 crore in the past two weeks.

FPIs’ exposure to consumer durables (Rs 13,083 crore), Power (Rs 12,323 crore), Metals (Rs 10,608 crore) and Oil and Gas (Rs 10,240 crore) also declined in value.

In the case of consumer durables, FPIs sold shares worth Rs 2,577 crore compared to an outflow of Rs 1,336 crore in the past two weeks.

FPIs sold Rs 1,956 crore in energy stocks after investing Rs 899 crore in the sector over the past two weeks. In the metals and mining sector, outflows increased to Rs 1,573 crore in the two weeks ending June.

Some purchases were observed in the oil and gas sector. FPIs bought Rs 847 crore in oil and gas stocks in the two weeks ended May 15, compared to inflows of Rs 155 crore in the previous two weeks.

The automotive, healthcare, consumer services, construction materials and chemicals sectors also saw a decline in FPI exposure in terms of value. In the auto sector, FPI sales amounted to Rs 1,459 crore against Rs 188 crore outflow for May 16-31.

In healthcare, FPIs were net sellers of Rs 860 crore in the first two weeks of June against net buyers of Rs 133 crore in the second half of May.

In the consumer services sector, sales fell to Rs 321 crore from Rs 690 crore in the past two weeks. In construction, sales increased to Rs 1,662 crore from Rs 752 crore, while in the chemical sector, an influx of Rs 135 crore was seen but at a slower pace.

(Disclaimer: The experts’ recommendations, suggestions, views and opinions are their own. They do not represent the views of Economic Times)

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