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Published: Mar 09, 2023
Updated: Mar 09, 2023

FPIs Continue to Sell, Financial and Durable Stocks Affected the Most

Foreign Portfolio Investors (FPIs) remain in "sell" mode as they continue to pull out funds from Indian markets. In the last fortnight of February, FPIs sold stocks worth Rs 2,263 crore in the financial services sector and Rs 1,111 crore in consumer durables. This article discusses the impact of FPI selling and their buying patterns in different sectors.

FPIs' Selling Patterns in February

The financial services sector and consumer durable companies saw the maximum selling by FPIs, followed by the IT, metals and mining, and power sectors. On the other hand, FPIs bought shares in services, energy, and capital goods sectors. The construction and construction material sectors also saw a considerable amount of buying.

Experts believe that FPIs are still taking out money from Indian markets, and the outflow from the financial and IT sectors indicates that they remain in "sell" mode. However, buying in oil and gas stocks was attributed to a positive demand outlook, and the expansion in the Indian services sector has made FPIs bullish.

Sectoral Allocation and Market Cap

Despite the selling, the financial services sector remained the highest sectoral allocation as of February end, followed by IT and oil and gas. These sectors have a significant market cap, and FPI selling affects the overall market sentiment.

FPI's avoiding riskier stocks for investment

FPIs continue to remain cautious about investing in Indian markets, and their selling patterns in the financial and durable sectors indicate that they are avoiding riskier stocks. However, buying in the services and energy sectors shows their positive outlook towards the Indian economy. It is essential to keep an eye on FPIs' buying and selling patterns as they significantly impact the market sentiment and overall economic growth.