look news india
Mumbai: According to the data, in the first fortnight of the current month, foreign institutional investors (FPIs) infused nearly Rs 31,000 crore into fast-moving consumer goods (FMCG), telecom, financial and services sector stocks.
In the first fortnight of March, foreign investors infused Rs 11,180 crore into the FMCG sector and Rs 6,648 crore into the telecom sector.
The reason for the large share of FMCG sector is block deals. British American Tobacco has sold 3.50 percent stake in ITC for Rs 17,000 crore.
If the ITC deal had not been done, there would have been negative outflow in the sector. The FMCG sector is currently under pressure due to sluggish rural demand. An analyst said it will take time for the FMCG sector to see meaningful volume growth. Margins of companies are improving due to reduction in raw material prices.
Meanwhile, foreign investors have been selling healthcare, oil and gas and IT stocks in the first fifteen days of March. Overall, foreign investors made net purchases of equities worth Rs 40,708 crore in the first fortnight.
A stock market analyst said the real mood of FPIs could not be known as few big deals were made through exchanges in March.
With changes in bond yields in the US, FPIs also keep changing their investment strategies in different countries. Hence, FPI activity has been erratic in recent times.
