Telecom rings in highest FPI flows in May, shows Prime Infobase data

The last fortnight of May saw foreign portfolio investors (FPIs) inject ₹6,989 crore into the domestic equities, driven by optimism around the India-Pakistan ceasefire, hopes of a potential United States (US) trade deal and a surge in block deals.  

According to the data from Prime Infobase, FPIs invested ₹7,052 crore in telecom, mostly due to the rising subscriber base, and potential tariff hikes.   

Stocks in the services and capital goods space attracted investments of ₹6,210 crore and ₹3,094 crore, respectively.

“The telecom sector is a growth story both in terms of subscriber base and potential for tariff hikes,” Chokkalingam G, founder, Equinomics said.   

Conversely, FPIs offloaded stocks in the information technology (IT) worth ₹2,725 crore amid US-related uncertainty.

“The medium-to-long-term outlook in IT is weak, with dollar revenue growth in low single digits,” pointed out Chokkalingam.  

Other sectors facing selling pressure included healthcare, power, consumer services and auto.