FIIs invested ₹15,559 crore in Indian equities during the first half of July.
Consumer services, metals and healthcare attracted the highest foreign investor inflows.
Auto stocks saw the biggest outflows, followed by capital goods and telecom.
FIIs Pump ₹15,559 Cr Into Indian Equities In July; Consumer Services Top Pick
Consumer services remained the biggest foreign investor bet, while metals staged a sharp turnaround and auto stocks saw the highest outflows in the first half of July
FIIs Pump ₹15,559 Cr Into Indian Equities In July; Consumer Services Top Pick
Summary
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Foreign institutional investors (FIIs) extended their buying streak into the first half of July, pumping ₹15,559 crore into Indian equities after turning net buyers in the second half of June, with consumer services, metals & mining, healthcare, realty and financials emerging as their preferred sectors.
The latest inflows follow net purchases of ₹14,105 crore in the second half of June, reflecting improving sentiment towards Indian equities amid attractive valuations, easing geopolitical tensions between the US and Iran, softer crude oil prices and a correction in artificial intelligence (AI)-linked stocks.
According to a recent Goldman Sachs report, foreign investor positioning in Indian equities remains close to multi-year lows, leaving ample room for global funds to rebuild exposure after reducing allocations over the past few years. The brokerage said the recent inflows reflect not only improving market sentiment but also a positioning trade as investors gradually increase their allocations to India.
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Consumer Services, Metals Lead Inflows
Consumer services remained the biggest FII favourite for the second consecutive fortnight, attracting net inflows of ₹7,361 crore, up from ₹3,081 crore in the second half of June.
The metals & mining sector witnessed a sharp turnaround, with FIIs buying shares worth ₹5,993 crore after selling more than ₹4,370 crore in the previous fortnight.
Healthcare also attracted robust inflows of ₹4,101 crore, up from ₹1,435 crore in the preceding fortnight, while the services sector received ₹2,405 crore, compared with ₹2,592 crore previously.
Among other sectors, consumer durables drew ₹2,384 crore, realty and financials each received ₹1,975 crore, while construction materials attracted ₹1,574 crore. Construction materials marked a notable reversal after recording net outflows of ₹850 crore in the second half of June.
Auto Remains Biggest Laggard
Despite the broad-based buying, FIIs continued to pare exposure to several sectors.
Auto stocks witnessed the highest outflows at ₹6,936 crore, significantly higher than the ₹1,324 crore sold in the previous fortnight.
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FIIs also remained net sellers in capital goods, telecom, power and FMCG. Capital goods recorded outflows of ₹2,657 crore, followed by telecom at ₹2,454 crore, power at ₹1,267 crore, and FMCG at ₹1,106 crore, extending the selling trend seen in the second half of June.
The sustained buying in select sectors suggests foreign investors are becoming more constructive on Indian equities, while continuing to rotate away from segments where valuations or earnings visibility remain less favourable.