FIIs continue selling in power sector in July so far; invest in capital goods, auto, IT and healthcare stocks

FIIs resumed buying in metals and mining sectors, investing Rs 1969 crore after selling in May and June.

Foreign investors have invested across all sectors in the first half of July, except for the power sector, where they have been net sellers since the second half of April.

FIIs sold stocks worth Rs 891 crore in the power sector during the first half of July, following selling worth Rs 2,500 crore in June, Rs 3,042 crore in May, and Rs 834 crore in the second half of April.

Analysts said that FIIs are reducing their investments in the power sector due to profit booking after a strong rally over the past year. Power stocks have surged, with many penny stocks becoming multibaggers.

Since July 2023, narratives of power shortages, capacity addition, and sector reforms have boosted valuations. The weakest monsoon in 122 years increased demand and power prices from July to October 2023, further driving stock values.

Meanwhile, FIIs resumed buying in metals and mining sectors, investing Rs 1,969 crore after selling in May and June.

FIIs also invested heavily in the capital goods sector with Rs 3,612 crore, Rs 2,993 crore in auto, Rs 2,765 crore in IT, and Rs 2,378 crore in healthcare in the first half of the month.