FPIs lap up finance capital goods stocks in the first half of May

FPIs net bought Rs 12,847 crore worth of Indian equities in May so far; financial services led inflows while FMCG and realty saw outflows

Foreign Portfolio Investors (FPIs) bought the shares of financial services, capital goods, and oil and gas stocks the most in the first two weeks of May. Foreign investors bought finance stocks worth ₹4,728 crore, followed by capital goods stocks worth ₹2,233 crore. Oil and gas stocks (₹2,130 crore), services (₹1,762 crore) and automobiles (₹1,610 crore) were the other sectors where FPIs bought big.  

 

"The double-digit credit growth is aiding the buying interest in banking stocks. There is no other Nifty sector posting double-digit growth in key business parameters. Capital goods stocks were beaten down, and that explains the buying in the sector,” said Chokkalingam G, founder of Equinomics. 

 

 

Meanwhile, FMCG ( ₹1,057 crore) and realty (₹842 crore) bore the brunt of the FPIs selling in the first two weeks of this month. Power (₹720 crore), consumer durables ( ₹622 crore) and healthcare (₹606 crore) were the other sectors where FPIs sold shares.

 

Despite buying the sectoral allocation for financial services, it is down to 31.46 per cent as of March 15 from 31.8 per cent on April 30. However, financial services have the highest sectoral allocation. 

 

Information Technology has the second highest sectoral allocation at 8.47 per cent from 8.17 per cent on April 30, followed by oil, gas & consumable fuels at 7.33 per cent from 7.31 per cent. FPIs were net buyers to ₹12,847 crore in the first half of May.