Almost 92% of FPIs inflow between June 1 and 15 went into just three sectors: financial services, capital goods, and auto, which have been favourites of overseas fund managers since the beginning of the year.
FPIs bought banks and financial services shares worth ₹5,523 crore during this period. Indian banks are seeing the best-ever asset quality in the past ten years. According to India Ratings & Research, public sector banks’ gross non-performing assets declined to 5% in FY23 from a peak of 14.1% in FY18, while that of private banks reduced to 2.3% from 6.3%.
FPIs bought capital goods and auto stocks worth ₹3,460 crore and ₹3,079 crore, respectively. These investors have been buyers of capital goods shares for 13 out of the previous 14 months, amid the re-rating of the sector.
FPIs were sellers in IT stocks in this period for the third consecutive month. They sold IT shares worth ₹3,139 crore in the first fortnight of June and overall ₹15,848 core since March 1, 2023 as investors have been cautious about the sector’s prospects because of slowdown fears in developed economies. The Nifty IT index gained just 4% in the last one year compared to the Nifty’s 22% gain.
FPIs have sold metal and mining shares also worth ₹2,243 crore between June 1 and 15.
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