What is on the sell-off list of foreign investors on Indian stock markets?

FPI sell-off in Indian stock markets: Foreign investors sold Indian equities worth Rs 27,258 crore across 14 sectors from May 1 to 15, according to NSDL data. The financial services and information technology sectors witnessed the highest selling pressure during this period, with foreign investors According to an ET report, shares worth Rs 9,687 crore and Rs 5,574 crore were offloaded, respectively.

In April, over Rs 9,000 crore was sold in each of these sectors. Since the beginning of 2023, the financial services sector has seen foreign fund inflows of Rs 52,900 crore, while the IT sector has seen an outflow of Rs 7,066 crore.

Increase

The construction sector also saw strong overseas sales with Rs 3,811 crore in the first half of May, following a purchase trend of Rs 280 crore in April. In other sectors such as oil & gas and FMCG, foreign sales stood at Rs 2,808 crore and Rs 1,158 crore, respectively.

Net FPI outflow

Moreover, there was a reversal in sentiment in the energy, auto and telecom sectors, with foreign investors selling shares worth Rs 792 crore, Rs 706 crore and Rs 272 crore respectively in the first half of May.

This is in contrast to the buying trend seen in April, when these sectors attracted foreign investments worth over Rs 4,000 crore, Rs 1,000 crore and Rs 8,000 crore respectively.

Indian stock indexes BSE Sensex and Nifty50 have been witnessing volatile sessions for the past few weeks. Market experts believe that multiple factors are contributing to the volatility, such as uncertainty over the June 4 Lok Sabha poll results and the unpredictability of the US Federal Reserve’s interest rate cut.