 "Sectoral flows hint foreign portfolio investors in defensive mood")
Foreign portfolio investors (FPIs) appear to be turning defensive after a relentless run this year. In August, they invested the highest sum into fast-moving consumer goods (FMCG) stocks, while yanking out money from high-beta sectors such as auto and banking.
Over the past three months, FMCG stocks have cornered the highest FPI flows at $1.7 billion, according to an analysis by IIFL Alternative Research. “In terms of positioning in August, FPIs turned cautious as they were buyers across most of the defensive sectors,” said Sriram Velayudhan, vice-president at the firm.
Oil & gas, power, construction and telecom were some other sectors that saw positive foreign flows in August. On the other hand, auto, capital goods, banks & financials, and metals saw a pullback in terms of FPI flows.
Currently, FPIs have the highest allocation to financial stocks at 31.8 per cent, followed by information technology (IT) at 14.67 per cent. The allocation to the IT sector is up 129 basis points (bps) this year, while the allocation to banks and financials is down 305 bps.
Over the past three months, FMCG stocks have cornered the highest FPI flows at $1.7 billion, according to an analysis by IIFL Alternative Research. “In terms of positioning in August, FPIs turned cautious as they were buyers across most of the defensive sectors,” said Sriram Velayudhan, vice-president at the firm.
Oil & gas, power, construction and telecom were some other sectors that saw positive foreign flows in August. On the other hand, auto, capital goods, banks & financials, and metals saw a pullback in terms of FPI flows.
Currently, FPIs have the highest allocation to financial stocks at 31.8 per cent, followed by information technology (IT) at 14.67 per cent. The allocation to the IT sector is up 129 basis points (bps) this year, while the allocation to banks and financials is down 305 bps.
One subscription. Two world-class reads.
Already subscribed? Log in
Subscribe to read the full story →*Subscribe to Business Standard digital and get complimentary access to The New York Times
Smart Quarterly
₹900
3 Months
₹300/Month
SAVE 25%
Smart Essential
₹2,700
1 Year
₹225/Month
SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months
Super Saver
₹3,900
2 Years
₹162/Month
Subscribe
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors
Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share
Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor
Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements
Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app
SAVE 25%