Financials and IT stocks see highest FPI selling in August, shows data

Foreign portfolio investors (FPIs) continued to exert selling pressure on key sectors such as financial services, information technology, and oil & gas in the first half of August.

 

After heavy sell-offs in the latter half of July, FPIs pulled out ₹13,471 crore from financial services, ₹ 6,380 crore from information technology, and ₹4,091 crore from oil & gas stocks during the first fortnight of August. Other sectors that witnessed notable outflows included power (₹2,358 crore) and healthcare (₹2,095 crore). 

Overall, FPIs turned net sellers to the tune of ₹20,976 crore over the past two weeks. On the other hand, they showed buying interest in telecommunication (₹7,446 crore), construction materials (₹1,690 crore), and construction (₹ 1,378 crore). In addition, capital goods (₹ 1,132 crore) and metals & mining (₹ 606 crore) attracted net inflows. 

Despite the recent selling, financial services and information technology continue to remain the top allocations for FPIs. As of the first half of August, FPI allocation to financial services stood at 31.5 per cent, marginally lower than 31.64 per cent at the end of July. Allocation to IT declined from 7.38 per cent in July to 7.26 per cent in August. In contrast, the automobile sector witnessed a rise in allocation, moving up from 6.97 per cent to 7.2 per cent during the same period.