FPIs' defensive mood in August hints at sectoral flows

FPIs have the highest allocation to financial stocks at 31.8 per cent, followed by information technology (IT) at 14.67 per cent.

Foreign portfolio investors (FPIs) seem 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. In the past three months, FMCG stocks have cornered the highest FPI flows at $1.7 billion, as per 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