In June, FPIs after remaining net sellers in April and May bought Rs. 26,565 crore worth of Indian stocks while they respectively bought Rs. 8,671 crore and Rs. 25,586 crore equity was sold. In February and March also they respectively Rs. 1,539 crore and Rs. 35,098 crore were net buyers, after starting the year on a negative note in January, when they bought Rs. 25,744 crore worth of shares were sold.
On Friday, foreign institutional investors (FIIs) raised Rs. 1,506.12 crore were net buyers while domestic institutional investors accounted for Rs. 461.56 crore were net sellers.
VK Vijayakumar, chief investment strategist at Geojit Financial Services, said FPIs bought heavily in telecom and financial services in the fortnight ending June 30.
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They were also buyers in auto, capital goods, healthcare and IT while the rest were sellers due to faster-than-estimated selling in the metals, mining and power sectors in recent months, the analyst said.
“FPIs have been consistent buyers in July so far during the week ended July 19. FPIs have invested Rs 30,772 crore in equity since July-19. Debt investment during the period was Rs 13,573 crore,” said VK. Vijayakumar, Chief Investment Strategist, Geojit Financial Services.
During the fortnight ending July 15, FPIs were buyers in auto, capital goods, healthcare, IT, telecom and oil and gas, Vijayakumar said, adding that the notable trend was the lack of buying in financial services, which he said partially explained. Financial services have underperformed so far in July.
“If the recent trend of weakness in the dollar and bond yields continues, FPIs are likely to continue their buying in the market. Local and foreign investors are keenly watching for possible changes in the long-term capital gains tax in the budget to be presented on July 23,” he said. added
Indian benchmark equity indices closed deep in the red on Friday, tracking declines in global peers due to broad-based profit booking ahead of the Union Budget next week. Selling was seen in all sectors. On Friday, the Nifty 50 index fell 1.09% or 270 points to close at 24,530 while the S&P Sensex fell nearly 1% or 739 points to 80,604.65.
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