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Foreign investors showed disinterest in these five sectors and withdrew Rs 1 lakh crore in 6 months.

Sagar Patel

By Sagar Patel

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In the last six months, foreign investors have withdrawn more than Rs 1 lakh crore from five sectors.

In the current year, FIIs, i.e. foreign institutional investors, have withdrawn more money from the stock market. This is clearly confirmed by the figures from NSDL and CSDL. But today we will discuss which sectors have been the biggest target of foreign investors. Yes, five such sectors have emerged from which foreign investors have withdrawn more than Rs 1 lakh crore in the last six months.

Many experts also claim that the exit of foreign investors from the Indian stock market is due to the high valuation of stocks. On the other hand, there is no trigger emerging to allow money to be invested in the Indian stock market. This is the reason why foreign investors are investing Indian money in such markets, the valuation of which is lower than that of the Indian markets and the returns are also higher. Let’s try to understand in the language of statistics which are the sectors from which foreign investors have withdrawn the most money.

These sectors were attacked

So far, in the first six months of calendar year 2024, foreign institutional investors i.e. FIIs have withdrawn around Rs 1 lakh crore from five major sectors such as finance, oil and gas, consumer goods, IT and construction. Till June 15, FIIs have sold financial shares worth Rs 53,438 crore, oil and gas shares worth Rs 13,958 crore, consumer goods shares worth Rs 12,911 crore, IT shares worth worth Rs 13,213 crore and construction shares worth Rs 9,047 crore.

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On the other hand, purchases have been observed in the consumer services, capital goods, telecommunications, services and real estate sectors. What is special is that in the first six months except fortnight, a net outflow of more than Rs 26,000 crore has been observed in the stock market.

Money withdrawn from FPI from here

Sector how much money was withdrawn ,in millions of rupees,
financial services 53,438
oil and gas 13,958
consumer goods 12,911
HE 13,213
construction 9,047
durable consumption 4,739
Metals and Mining 4,152
Media 2,634
Construction materials 2,148
Utilities 110
diversified 93

Why are you withdrawing money?

The main reason for the sale of FII is the continuous rise in stock market valuation. Thus, FII capital fell to an 11-year low of 17.68 per cent in March, down 0.51 per cent quarter-on-quarter. Over the next six months, the three big triggers for FII flows will be the Union Budget, the US Federal Reserve interest rates and the outcome of the US presidential elections. After meeting With over 50 investors on the recent tour of the US, Jefferies analysts believe that the second half of the calendar year will see an improvement in FII flows into India. Especially when there will be clarity on Modi 3.0 policies after the budget.

Foreign investors invested money here.

Sector how much money invested ,in millions of rupees,
Forest materials 356
textile 811
chemicals 1,168
car 1,862
force 2,323
health care 3,754
others 5,086
real estate 9,466

What could be the trigger?

Mahesh Nandurkar of Jefferies said in a media report that his meeting with investors in the United States indicates that apart from the United States, other countries around the world are also showing interest in investing in India. India’s medium-term growth of more than 7 percent and its $5 trillion market capitalization have increased interest in Indian opportunities. He said the US Federal Reserve’s possible rate cut at the end of the year could be a big trigger for higher FII flows into India.

Which sectors to focus on now?

Although FII fund managers seem confident in the economy and earnings scenario of Indian industrialists, their reluctance to enter the stock market during the post-election rally is due to high valuations. A possible slowdown in domestic retail flows could create entry opportunities for FIIs. According to a Jefferies report, FIIs are showing more interest in investing in sectors such as residential real estate, airports, hotels and shopping malls. The main reason for this is the possibility of higher capital spending at the local level.

Sagar Patel

Sagar Patel

I am Sagar Patel, specializing in business news reporting. With a keen focus on economic trends, market analysis, and corporate developments,

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