FMCG, power and consumer durables stocks bore brunt of FPI selling

FPIs were net sellers (buying-selling) of FMCG stocks worth Rs 3,626 crore, power stocks worth Rs 3,120 crore, and consumer durables shares worth Rs 1,893 crore

Fast-moving consumer goods (FMCG), power and consu­mer durables stocks bore the brunt of foreign portfolio inv­estor (FPI) selling in the first two weeks of June.  FPIs were net sellers to the tune of ₹5,404 crore on the first for­t­n­ight of June. FPIs were net sellers (buying-selling) of FMCG stocks worth ₹3,626 crore, power stocks worth ₹3,120 crore, and consumer durables shares worth ₹1,893 crore. Infor­mation technology (₹1,713 crore), and consu­mer services (₹1,461 crore) were the other sectors whe­re FPIs sold heavily.    “The volume growth in the FMCG sector is going to be in poor single digits in the June qua­rter des­pite inflation falling and expectations of a good monso­on,” said G Chokkalingam, founder of Equinomics Research. Meanwhile, FPIs were net buyers of financial services stocks worth ₹4,685 crore, chemicals worth ₹1,405 crore, and oil and gas stocks worth ₹1,199 crore. Capital goods, at ₹1,191 crore, and realty, at ₹431 crore, were the other sect­ors where FPIs were significant buyers. 

  Financial Services has the highest sectoral allocation of FPIs at 29.8 per cent, down from 31.7 per cent at the end of May. Despite selling, the sectoral allocation tow­ards IT rose to 8.38 per cent from 8.24 per cent as of May. The allocation towards oil and gas stocks declined to 7.21 per cent from 7.22 per cent.