Power, IT, capital goods stocks attract highest FPIs flows, shows data

Foreign portfolio investors (FPIs) preferred stocks in the power and capital goods space, while pruning exposure to metals and financial stocks during the second half of last month. FPIs were net buyers of power stocks worth Rs 9,357 crore, capital goods worth Rs 5,878 crore, and information technology worth Rs 3,717 crore, according to data collated by primeonfobase.com. FPIs were net buyers to the tune of Rs 11,526 crore in the second half of August.

"The peak power requirement is at a record high, and the merchant value is likely to go up. IT stocks are a consequence of the value hunt by investors. Investors are looking for value, and nothing is left in the market," said Ambareesh Baliga, an independent equity analyst.

Meanwhile, they were net sellers in metal stocks worth Rs 5,930 crore, financial services worth Rs 3,672 crore, and oil, gas and consumables worth Rs 1,778 crore.

"There is a slowdown in China, and the global economy hasn't revived; in such a scenario, metals will have these short phases when their prices go up, and that is hurting metals. The net interest margins of banks leaked out in the last quarter, and there is some concern about the disruption threat over a period by Jio Financial Services," said Baliga.

The highest sectoral allocation as of August end was to financial services at 32.91 per cent, up from 32.77 per cent on August 15, 2023. The allocation to information technology stocks declined to 9.76 per cent from 9.78 per cent, and oil and gas stocks declined to 8.8 per cent from 9.5 per cent.