FPIs raise the ante by driving up allocation to oil & gas, auto stocks

FPIs increased their allocations to the oil and gas sector by 44 bps and the power sector by 21 bps

Foreign portfolio investors (FPIs) have increased their allocation to the automotive (auto) sector by 37 basis points (bps) month-on-month to 5.6 per cent in June - the highest level since March 2019.

Last week, the S&P BSE Auto Index made fresh lifetime highs - the first among BSE’s 19 sectoral indices to make a new record in recent months. Easing commodity prices, supply-chain issues, and a cut in fuel prices have elevated sentiment towards auto stocks.  

In a recent note, Morgan Stanley has said the auto industry looks ‘attractive’ as it has the right drivers in place to outperform the market. Besides