FPIs hike exposure to banking and financial stocks, exit in IT in May

Foreign portfolio investors (FPIs) increased their exposure in banking and financial stocks, while booking profits from the information technology and insurance sector in May. The month saw a sharp turnaround in fortunes with overseas investors selling shares worth nearly $900 million during the first half and pumping in close to $500 million during the second half.

“The defensive sectors saw outflow while high beta and “reopening” theme were in the flavour,” observes Abhilash Pagaria, analyst at Edelweiss Alternative Research. During the month the benchmark Nifty made all-time highs. FPI assets also hit a record high of $595 billion, up 8.8 per cent over the previous month.