FPIs turn buyers in second half of November; Financial Services, IT, FMCG stocks see inflows

Foreign Portfolio Investors (FPIs) adopted a more optimistic stance on the Indian stock market during the latter half of November, reversing the heavy selling witnessed in October and the first half of November.

FPI inflows into Indian equities amounted to ₹808 crore between November 16 and November 30, a marked contrast to the substantial outflow of ₹22,420 crore recorded in the first fortnight of the month. The net FPI selling in November amounted to ₹21,612 crore. In October, FPIs had offloaded Indian equities worth a record ₹94,017 crore, according to data from National Securities Depository Limited (NSDL).

As a result, the assets under custody (AUC) of FPIs saw a marginal increase, rising to ₹71.88 lakh crore in November from ₹71.08 lakh crore in October. This shift signals a renewed interest in Indian equities after a period of significant sell-offs.

Here’s a look at key sectors that FPIs bought and sold the most during November.

Sectors Attracting FPI Inflows

FPIs turned bullish on the Financial Services sector during the second half of November, infusing ₹9,597 crore. This marked a significant reversal from the ₹7,092 crore outflow recorded during the first half of the month and the ₹26,139 crore outflow in October, highlighting a renewed appetite for the sector.

The Information Technology sector also saw robust FPI interest, with inflows of ₹2,429 crore between November 16-30, building on the ₹3,087 crore inflow during the first half of the month, according to NSDL data.

The Fast-Moving Consumer Goods (FMCG) sector followed with inflows worth ₹2,184 crore in the latter half of November, recovering from outflows of ₹3,589 crore in the first half.

The Realty sector witnessed consistent FPI inflows, receiving ₹1,367 crore in the second half, in addition to the ₹694 crore inflow during the first half of the month.

Sectors Facing FPI Selling

The Oil, Gas & Consumable Fuels sector bore the brunt of FPI outflows, with equities worth ₹6,132 crore sold in the second half of November, adding to the ₹7,214 crore offloaded during the first half. The total outflow from the sector for November stood at ₹13,346 crore.

The Automobile and Auto Components sector continued to face significant selling pressure, with FPIs withdrawing ₹3,053 crore in the second half, following ₹4,411 crore outflows in the first half and ₹10,440 crore in October.

The Telecommunication sector experienced FPI outflows of ₹2,942 crore between November 16-30, on top of the ₹2,136 crore sold during the first half of the month.

In the Construction Materials sector, FPIs offloaded equities worth ₹1,913 crore in the second half, following ₹802 crore in early November and ₹3,440 crore in outflows during October.

This sectoral analysis highlights a shifting focus among FPIs, with renewed interest in Financial Services and IT, while Oil & Gas and Automobile sectors remain under pressure.

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