In March 2024, Indian equities witnessed Foreign Portfolio Investment (FPI) inflows totaling ₹35,098 crore ($4,240 million), as reported by the National Securities Depository Ltd. (NSDL).
This marked a significant turnaround from January 2024, when FPIs sold securities amounting to ₹25,744 crore, followed by an inflow of ₹1,539 crore in February 2024.
Overall, FPI inflows for the month totaled ₹51,996 crores ($6,276 million or $6.2 billion), which included debt, hybrid, debt-VR, and equities.
As of today’s date in the calendar year 2024, the cumulative investment by foreign portfolio investors (FPIs) amounts to ₹80,410 crore, or $9,702 million. This total includes investments in debt, hybrid, debt-VRR, and equity funds. In March 2024, the Sensex closed with a positive growth of +1.59%, while the Nifty 50 index also saw an increase of +1.57%.
Here are the top sectors that saw significant FPI inflows of ₹20,838 crore in March 2024
Telecommunication sector
India’s Telecom industry is the second largest Industry in the world with a subscriber base of 1.182 billion as of October 2023.
For the growth of the sector Indian government has implemented a PLI scheme worth ₹12,195 crores for the manufacturing of telecom and network products. Incentives worth more than ₹ 4,000 crore have been earmarked for the Design Led Manufacturing Scheme of the existing PLI Scheme.
As per the Mordor Intelligence report, the Indian Telecom sector is to grow at a CAGR of 9.40%.by 2029. The Telecom sector is subdivided in different categories such as infrastructure equipment, White Space Spectrum, Mobile virtual network provider,5G, Telecom, and Broadband providers.
In the month of March 2024, Foreign Institutional Investor (FII) capital inflows into the Telecommunication sector reached a peak at ₹7,967 crore, marking a significant increase from ₹2,740 crore in February 2024. This surge in investment propelled the S&P BSE Telecommunication index to a 5.2 percent climb during March.
Here are the major IT stocks in this sector such as Idea, Railtel Corporation of India Ltd, OnMobile Global Ltd, Bharti Airtel Ltd, Tejas Networks Ltd, and Indus Towers Ltd.
Financial Services sector
The financial service sector is a major segment of the economy composed of companies and institutions that provide commercial and retail customers with financial services.
Financial services comprise both banking and Non-Banking lending institutions. Insurance and asset management companies are also part of the financial services sector.
The fintech industry is the new edge service of the financial services sector. India’s FinTech industry market size was $50 billion in 2021 and is estimated at ~$150 billion by 2025.
In March, the financial services sector saw the second-largest inflow of FII capital, totaling ₹6,630 crore. At the same time, the S&P BSE Financial Services index registered a 1.4% increase during that month.
Financial Services Index constituents include 360 ONE WAM Ltd, Aditya Birla Capital Ltd., Bajaj Finserv Ltd., AU Small Finance Bank Ltd., Axis Bank Ltd., and many more.
According to the shareholding pattern disclosed by HDFC Bank Ltd. for the January-March quarter, as of March 31, 2024, Foreign Portfolio Investors’ stake in the bank has decreased to 47.83% from 52.3% in the previous quarter.
Fast Moving Consumer Goods sector
Fast-moving consumer goods (FMCG) are products that are sold quickly and at a relatively low cost. These goods include non-durable household items such as packaged foods, beverages, toiletries, candies, cosmetics, over-the-counter drugs, dry goods, and other consumables. Examples of FMCG products include toothpaste, soap, shampoo, laundry detergent, paper towels, razors etc.
The growth rate of the Fast-Moving Consumer Goods (FMCG) sector in India is expected to increase at a compound annual growth rate (CAGR) of 27.9 percent from 2023 to 2029.
Furthermore, the market size of FMCG in India was valued at 230.14 billion US dollars in 2023 and is expected to reach nearly 1007.45 billion US dollars by 2029.
In March, the Fast Moving Consumer Goods sector saw the third-highest inflow of funds, with FII capital totaling ₹6,241 crores. Additionally, the S&P BSE Fast Moving Consumer Goods index experienced a decrease of 0.34% during the same month.
During the initial half of March, foreign institutional investors (FIIs) purchased shares worth ₹11,180 crores. However, in the latter half of the month, they sold shares worth nearly ₹4,939 crores.
Here are the major players in the Fast Moving Consumer Goods sector, ITC, Hindustan Unilever, Nestle, Britannia, Dabur, Godrej Group, and Marico.
Written by Omkar Chitnis
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