Foreign investors turn net buyers in second half of November, shows data

Pumped money into financial services and IT, while redeeming investments from oil and gas, and auto stocks

Foreign investors turned net buyers in the second half of November, investing Rs 809 crore, after pulling out more than Rs 22,400 crore during the first half, according to data collated by primeinfobase.com.

 

They favoured financial services and IT stocks, while oil and gas, and auto stocks saw the maximum net outflows.

 

Financial services stocks saw buying worth Rs 9,597 crore, while IT stocks attracted Rs 2,429 crore. In contrast, the data reveals that oil and gas stocks saw selling worth Rs 6,132 crore.

 

The buying in IT was driven by a positive outlook for the US economy, a significant revenue generator for domestic software exporters. 

 

 

Banking stocks also gained favour due to their double-digit growth prospects and expectations of easing policy rates by the Reserve Bank of India.

 

"Banking stocks are back as FPI favourites. Identifying sectors that can offer double-digit growth is difficult, many banks still show that promise," said Chokkalingam G, founder of Equinomics.

 

Fast-moving consumer goods (FMCG), realty, and capital goods stocks also saw buying worth Rs 2,184 crore, Rs 1,367 crore, and Rs 681 crore, respectively, from FPIs.

 

According to experts, FPIs have the highest sectoral allocation towards financials at 28.94 per cent, followed by IT at 9.9 per cent.