Overseas funds pull out of IT and financial services stocks in July

Foreign investors pull out over ₹21,000 crore from key sectors in late July, with IT and financials bearing the brunt of the sell-off

Information technology (IT) and financial services stocks faced strong selling pressure from foreign portfolio investments (FPIs) in the second half of July. FPIs withdrew ₹14,422 crore from IT shares amid earnings disappointment and ₹6,720 crore from financials. Other sectors witnessing heavy selling included oil and gas (₹4,177 crore), real estate (₹3,684 crore), and automobiles (₹2,425 crore). In total, FPIs were net sellers over the last two weeks. 

“The results from both the finance and IT sectors failed to impress, with companies posting only single-digit growth. The outlook remains cautious, especially as banks grapple with non-performing assets and mounting pressure on