In May 2024, Indian equities witnessed a Foreign Portfolio Investment (FPI) outflow totaling ₹25,586 crore ($3,063 million or $3.06 Billion), as reported by the National Securities Depository Ltd. (NSDL). This marked a significant decline in 2024.
Overall, FPI outflows for the month totaled ₹12,911 crores ($1,541 million or $1.5 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 ₹47,202 crore, or $5,288million. This total includes investments in debt, hybrid, debt-VRR, and equity funds.
In May 2024, the Sensex closed with a negative growth of 0.70%, while the Nifty 50 index also saw a decrease of 0.33%.
During the initial two months of FY24, Indian equities witnessed a significant sell-off of $4.10 Billion by FPIs, primarily attributed to political instability and the escalating VIX. Following a $1.04 Billion divestment in April 2024, FPIs escalated their selling in May to $3.06 Billion. The surge in the volatility index (VIX) notably influenced FPI flows, correlating with the political uncertainties.
Here are the top sectors that made significant FPI outflows of ₹25,586 crore in May 2024
Financial Services sector
In May, the financial services sector saw the largest outflow of FII capital, totaling ₹8,077 crore. At the same time, the S&P BSE Financial Services index registered a 1.5% decline 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.
Information Technology sector
In May, the Information Technology sector experienced the second largest withdrawal of FII capital, amounting to ₹5,802 crore. Concurrently, the S&P BSE IT index registered a decline of 0.70 percent during the month of May.
Notable companies within this sector include TCS, Tech Mahindra, LTIMindtree, and Infosys.
Oil, Gas & Consumable Fuels sector
In May, the Oil & Gas sector experienced an FPI outflow of ₹5,554 crore, coinciding with a 1.18 percent decline in the S&P BSE OIL & GAS Index for the same period.
Oil and Gas sector constituents include Indian Oil Corporation Ltd, Reliance Industries Ltd, Oil & Natural Gas Corporation Ltd, Bharat Petroleum Corporation Ltd, GAIL (India) Ltd, Indraprastha Gas Ltd
Here are the top sectors that received FPI inflows of ₹9,371 crore in May 2024
Capital Goods Sector
In May 2024, there was a notable surge in Foreign Institutional Investor (FII) capital inflows into the Capital Goods sector, reaching Rs 6,024 crore. This sector witnessed remarkable FII fund inflows for the month, contributing to an 11.16% increase in the S&P BSE Capital Goods index during May.
Some of the famous stocks in the sector include Bharat Heavy Electricals Ltd, Siemens Ltd, ABB India Ltd, Thermax Ltd, and Engineers India.
Consumer Services sector
In May 2024, there was a notable increase in Foreign Institutional Investor (FII) capital inflows into the Consumer Services sector, totaling Rs 2,343 crore. This marks the second influx of FII funds into this sector for the year, contributing to a 0.8% surge in the S&P BSE Consumer Discretionary index for the month of May.
Some of the famous stocks in the sector include Indian Hotels, Jubilant FoodWorks, Sapphire Foods India Ltd, Indian Railway Catering and Tourism Corporation Ltd. ,Zee Entertainment Enterprises Ltd.
Realty sector
In May 2024, capital inflows from Foreign Institutional Investors (FIIs) into the Realty sector surged to Rs 1,004 crore, marking the second such influx of FII funds for the year. This surge drove the S&P BSE Realty Index up by 2.33% during May.
Some of the stocks include Godrej Properties Ltd, DLF ltd, Brigade Enterprises Ltd,Sunteck Realty Ltd,Oberoi Realty Ltd.
Written by Omkar Chitnis
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