 "FPI")
Foreign portfolio investors (FPIs) increased wager on financial services, capital goods, information technology (IT), auto and construction companies during the second half of July.
FPIs invested Rs. 4,464 crore in financial services companies, Rs. 3,211 crore in capital goods and Rs. 1,631 crore in IT stocks, according to data collated by Primeinfobase. They also bought shares worth Rs. 1,609 crore in auto and auto components and Rs. 1,520 in construction stocks.
"Monsoons have improved. And there are reports about moderation in food prices. There is also the expectation that rate hikes may not happen in India. Moreover, the credit growth and asset quality remain healthy,' said Chokkalingam. G, founder of Equinomics.
With regards to capital goods, Chokkalingam said that the companies benefit from the rising capex by both the government and private sector. He added that there had been some value buying in some heavyweights on IT.
Meanwhile, chemical stocks saw selling worth Rs. 783 crore, followed by construction materials (Rs. 194 crore) and forest materials (Rs. 20 crore).
Financial services stocks had the highest FPI allocation in July, at 33.26 per cent from 29.93 per cent at the beginning of July. IT stocks were second with 9.8 per cent, followed by energy stocks at 9.3 per cent.
