FPIs Shift Gears in May: Favour Telecom, Services & Capital Goods; Exit IT, Power & Healthcare
Sectors That Attracted FPI Flows
- Telecom, Services & Capital Goods Lead the Pack: FPIs showed strong bullishness in Telecommunication (₹8,089 Cr), Services (₹7,972 Cr), and Capital Goods (₹5,327 Cr)—with most flows concentrated in the second half of May, driven by optimism in digital infrastructure, outsourcing and industrial growth.
- Financials, Oil & Gas, and Chemicals Draw Steady Interest: Financial Services saw ₹4,028 Cr in net inflows, despite second-half profit-taking. Oil & Gas attracted ₹2,520 Cr, while Chemicals drew ₹1,308 Cr, signaling interest in core economy and energy-related sectors.
- Recovery Noted in FMCG & Construction Materials: After a weak start, FMCG reversed losses to close with ₹815 Cr in net buying. Construction Materials received ₹575 Cr, indicating a slow but steady accumulation.
Sectors Facing the Heat
- FPIs reduced their exposure in defensive and interest-rate sensitive sectors. Healthcare led the outflows with ₹2,614 Cr, followed by Power (₹2,494 Cr) and Information Technology (₹2,436 Cr).
- Consumer Durables, Realty, and Consumer Services also saw net selling between ₹491 Cr and ₹1,734 Cr.
- Smaller sectors like Textiles, Diversified and Construction Services witnessed minimal activity.
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