FPI flows send IT stocks and valuations soaring this year, shows data

Analysts bullish over near-to-medium term

Information technology (IT) has emerged as the most preferred bet for foreign portfolio investors (FPIs) this year. Their allocation to the sector this year went up 129 basis points to 14.67 per cent until the end of August. They, on the other hand, have drastically pruned exposure to banking and financial stocks, a traditional favourite. Until August 31, the allocation to the sector had declined by 305 basis points to 31.8 per cent, shows the data compiled by IIFL Alternative Research.
 
The higher allocation sent stocks and valuations soaring in the IT sector, with the NSE IT index gaining