Domestic benchmark indices ended the month of September in the green. The BSE Sensex gained 1,154.91 points, or 1.72 percent, and ended the month at 65,828. Similarly, the NSE Nifty 50 gained 395 points, or 2.1 percent, to 19,638.80.
Despite the fall in the index, Global investors are looking at India as an attractive investment for a long-term growth perspective as an alternative to China, So Foreign institutional investors are pouring money into India, picking stocks carefully in the market.
While FPI flows were sold mildly in the first half of September, totaling Rs 2,968 crore, they boosted their selling by three times in the second half, reaching Rs 10,842 crore.
This year, foreigners have invested over $16.35 billion in the Indian stock market, and after six months of purchasing, Foreign Portfolio Investors withdrew almost $1.6 billion in September.
The Capital Goods, which had the largest influx of FPI funds in September 2023 at Rs 5,100 crore, was followed by the Consumer Services sector, which saw inflows of Rs 4,178 crore. Third, the IT sector received Rs 1,886 crore in inflows, followed by Financial Services, which received Rs 1,792 crore, and Realty, which received Rs 664 crore.
Capital Goods
This sector was seen as a favourite sector for FIIs in September month, and this sector has seen consistent inflows over the last Eight months. On a year-to-date basis, the S&P BSE Capital Goods Index has risen 43.90 percent.
The S&P BSE IT index climbed 6.42 percent in September, and 43.90 percent year to date.
FII capital inflows into the Capital Goods sector were Rs 5,100 crore in September, down from Rs 8,330 crore in August.
Capital Goods has a market size of $43.2 billion in India. The capital goods industry is divided into ten sub-sectors, with electrical equipment being the largest, followed by plant equipment and earthmoving/mining machinery.
Consumer Services
Consumer services companies that offer a variety of services to customers. These businesses operate in a variety of sectors including e-commerce, digital payments, ride-hailing, food delivery, online travel, local search, and healthcare.
This sector was seen as a second favorite sector for FIIs in September month. On a year-to-date basis, the S&P BSE Consumer Discretionary index has risen 21.7 percent. The S&P BSE IT index climbed 1.16 percent in September.
FII capital inflows into the Consumer Services sector were Rs 4,178 crore in September, up from Rs 2,035 crore in August.
Here are the major Consumer Service stocks in this sector such as Jubilant FoodWorks, LT Foods, Nestle, Colgate-Palmolive, and Zomato.
Information Technology Sector
The IT industry contributed 7.4 percent of India’s GDP in FY22 and is expected to contribute 10 percent by 2025. India’s IT spending is anticipated to rise to US$ 110.3 billion in 2023, up from an estimated US$ 81.89 billion in 2021.
FII capital inflows into the information technology industry were Rs 1,886 crore in September, down from Rs 4,088 crore in August.
The S&P BSE IT index climbed 3.63 percent in September, and 13.46 percent year to date.
Here are the major IT stocks in this sector such as TCS, Tech Mahindra, LTIMindtree, and Infosys.
Written by Omkar Chitnis
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