Fortnightly FII data for January 16, 2023, to January 31, 2023, showed that FIIs were on a selling spree. They sold investments and relocated them from India to other markets that were cheaper.
Their top sells in the second fortnight of January were Financial Services (₹ 8,503 crores), Oil, gas & Consumable Fuels (₹ 4,772 crores), Consumer Durables (₹ 1913 crores), Services (₹ 1,505 crores) and Consumer Services (₹ 1,185 crores).
However, data for the first fortnight of February, i.e., right after the budget, showed that FIIs invested in Financial Services (₹ 2368 crores), Information Technology (₹ 1,777 crores), Capital Goods (₹ 1509 crores), Healthcare (₹ 1099 crores) and Automobile and Auto Components (₹ 964 crores), cumulatively 7,717 crores.
The capex outlay of ₹ 10 lakh crores in FY24 was a positive announcement during the budget and it will help in achieving better credit growth. In addition, the capital goods sector is also a direct beneficiary of capex spending.
On the other hand, FIIs sold shares in sectors like Oil, Gas & Consumable Fuels (₹ 6,263 crores), Power (₹ 2,351 crores) and Metals & Mining (₹ 1,948 crores) between February 01, 2023, and February 16, 2023.
“We also like the pharma sector given its defensive qualities amid the slowing global economy and have started to become positive on consumption-related names after the significant correction,” said Credit Suisse.
Written by Simran Bafna
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