FPI exodus hits financial services, Rs 23,274 crore outflows

21 Oct 2024 , 12:24 PM

According to NSDL statistics, overseas investors sold Indian equities worth ₹71,502 crore in the first 15 days of October, spread across 17 sectors.

The largest impact of foreign selling was felt by the financial services sector, as investors withdrew ₹23,274 crore from these shares following a purchase of a comparable amount in September. International investors sold ₹37,732 crore in the sector between January and September.

Foreign portfolio investors (FPIs) sell the most shares of sectoral participants when there is a risk-off attitude since financials account for a major portion of the Nifty 50’s weight (33%).

Over the last month, the benchmark Nifty 50 declined 3.6%, while Bank Nifty fell 3.2%.

As of October 18, foreign investors had sold ₹77,000 crore worth of Indian stocks, the most they had ever sold in a single month. This was due to their diminished interest in local stocks due to the recent surge in Chinese shares.

The other two areas that saw increased inflows of foreign capital during this time were the oil and gas and electricity sectors. Power sector shares experienced outflows of 2,678 crore, while oil and gas shares saw selling of 12,371 crore, mostly because of the increase in crude oil prices, which rose to $81.13 per barrel earlier this month due to the crisis in West Asia.

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