The Indian stock market has seen a sharp correction, with the benchmark Nifty 50 down nearly 3% from its all-time high. Weak cues in global markets, caution due to ongoing Lok Sabha elections, March quarter corporate earnings line-up and sustained outflows of foreign funds are weighing down the domestic stock market.
Foreign portfolio investors (FPIs) have turned net sellers of Indian stocks so far this year. After heavy purchases in March, FPIs are net sellers of Indian stocks; INRIn April, there were 8,600 people. As per data available with National Securities Depository Ltd (NSDL), his FPI selling in Indian stocks during April was INR867.1 billion INR5.076 billion so far in May.
FPI sales value INRFrom April 16 to 30, inflows in Indian stocks were $14.079 billion. INRIn the first half of the month, it was 540.8 billion yen.
Also read: FPI converts seller value into net amount INR8.671 billion in April after two months of purchases. Will the trend continue?
According to NSDL data, most of the FPI selling last month was concentrated in IT services stocks, financial stocks and FMCG stocks. During the second week of April, i.e. from April 16 to 30, FPIs were sold. INRThe information technology (IT) sector is worth 4.915 billion shares.This happens after a spill INRIn the first half of the month, it was 465.8 billion yen.Therefore, the total FPI is INRThe number of IT stocks in April was 9.573 billion.
This was followed by the financial sector, which saw a significant sell-off in FPI values. INRIn the same month, it was 933.8 billion yen. FPIs offload financial stocks, INR12,550 billion from April 16th to April 30th after purchasing the value INRAccording to the data, it was $3.212 billion in the first half of the month.
Robust FPI selling was also seen in the fast moving consumer goods (FMCG) and oil and gas sectors.They sold an equivalent amount of FMCG stocks. INR791.4 billion, equivalent to oil and gas stocks INR236.6 billion. FPI outflows in FMCG and oil and gas sectors from April 16 to 30 are as follows: INR356.3 billion INR144.3 billion each.
Also read: FPIs continue to buy cyclical stocks such as capital goods and auto stocks while selling defensive stocks in April
Conversely, foreign investors continued their buying momentum in the telecommunications and capital goods sectors in the second half of April.
FPI investment in India's telecom sector is INRApril injection amount was 827.8 billion yen INRPurchased stocks worth 661.9 billion yen from April 16th to 30th. INRIn the first half of the month, it was 165.9 billion yen.
FPI outflow is expected in the power sector INRThere was strong buying at $834 in the second half of the month. INR514.3 billion yen from April 1st to 15th.Total FPI inflows into the power sector last month were INR430.9 billion.
Also read: Why is the Indian stock market declining for 5 consecutive sessions? — We explain 5 important reasons
Additionally, FPI is INRThe capital goods sector in April was $3.636 billion.His FPI inflows into the sector in the first half of the month were INR122.8 billion, followed by INR2.48 billion in the second half.
In the auto and auto parts sector, FPIs bought heavily. INR1,119 million in April.
Overall, assets under custody (AUC) in the Indian stock market, i.e. the stock portfolio of FPIs, is INR662.7 billion yen as of April 30th INR641.5 billion yen as of March 31, 2024.
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