After significant selling in the first two weeks of August due to global volatility and high domestic valuations, foreign investors shifted to buying by investing Rs 25,000 crore across eight sectors in the latter half of the month.
Consumer durables saw the highest inflows, with FIIs purchasing around Rs 5,297 crore, followed by the information technology, services, and financial sectors, which attracted funds worth Rs 4,529 crore, Rs 4,251 crore and Rs 2,782 crore, respectively.
Notably, the services and financial sectors had faced heavy selling in July, with outflows of Rs 1,474 crore and Rs 7,648 crore, respectively, and in the first half of August, with further sell-offs of Rs 2,088 crore and Rs 14,790 crore, respectively.
Other sectors that saw FII buying included oil & gas (Rs 2,518 crore), healthcare (Rs 2,369 crore), consumer services (Rs 1,962 crore), and fast-moving consumer goods (Rs 1,815 crore).
Indian markets experienced significant volatility in the first half of August due to the unwinding of the Yen carry trade and concerns over a potential slowdown in the US markets. However, a partial recovery was observed later in the month, driven by growing expectations of a rate cut in September 2024.
Among the sectors facing the most selling pressure from FIIs, the power sector led with outflows exceeding Rs 2,305 crore, followed by the metals & mining and automobile sectors, with sell-offs to the tune of Rs 1,105 crore and Rs 751 crore, respectively.
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