In April 2024, Indian equities witnessed a Foreign Portfolio Investment (FPI) outflow totaling ₹8,671 crore ($1,036 million), as reported by the National Securities Depository Ltd. (NSDL). This marked a significant decline from February 2024.
Overall, FPI outflows for the month totaled ₹16,260 crores ($1,945 million or $1.9 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 ₹58,512 crore, or $7,080 million. This total includes investments in debt, hybrid, debt-VRR, and equity funds.
In April 2024, the Sensex closed with a positive growth of +1.13%, while the Nifty 50 index also saw an increase of +1.24%.
Here are the top sectors that saw significant FPI inflows of ₹16,112 crore in April 2024
Telecommunication sector
India’s telecom industry ranks second globally, boasting a subscriber base of 1.182 billion as of October 2023. To fuel its growth, the Indian government has launched a PLI scheme worth ₹12,195 crores for manufacturing telecom and network products, with over ₹4,000 crore earmarked for the Design Led Manufacturing Scheme under this initiative.
In March 2024, Foreign Institutional Investor (FII) capital inflows into the telecommunications sector peaked at ₹8,191 crore, up slightly from ₹7,967 crore the previous month. This surge propelled the S&P BSE Telecommunication index by 8.36% in April.
Here are the major IT stocks in this sector such as Railtel Corporation of India Ltd, OnMobile Global Ltd, Bharti Airtel Ltd, Tejas Networks Ltd, and Indus Towers Ltd.
According to the Mordor Intelligence report, the Indian Telecom sector is projected to achieve a compound annual growth rate (CAGR) of 9.40% by 2029. Within the Telecom sector, there are various subdivisions including infrastructure equipment, White Space Spectrum, Mobile virtual network provider, 5G, Telecom, and Broadband providers.
Power Sector
The Indian government plans to use renewable energy sources in order to achieve net zero emissions by 2070. Furthermore, the Ministry of Power expects that by 2030, the country will be able to meet 62 percent of its energy demands using non-fossil fuel sources, reaching 500 GW.
FII capital inflows into the Power sector were Rs 4,285 crores in April Month. The S&P BSE Power Index has returned 7.7 percent in April month.
Here are the major stocks in this sector: NHPC, Torrent Power, Inox Wind Energy Ltd, Power Grid Corporation of India Ltd, and Adani Green Energy Ltd
Capital Goods Sector
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.
In April 2024, Foreign Institutional Investor (FII) capital inflows into the Capital goods sector increased to Rs 3,636 crore, this sector has seen impeccable inflows of FII funds in april from december 2023 his surge propelled the S&P BSE Capital Goods index by 3.5% in April.
Some of the famous stocks in the sector include Bharat Heavy Electricals Ltd, Siemens Ltd, ABB India Ltd, Thermax Ltd, and Engineers India.
Written by Omkar Chitnis
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