FIIs' sell-off hits oil, construction, IT Sectors hard in first fortnight of June
Foreign institutional investors continued selling in oil & gas, construction, information technologies, metal & mining, consumer durables, and auto and FMCG stocks during the first two weeks of June, according to NSDL data.
FIIs sold around Rs3,683 crore in oil and gas stocks after offloading about Rs 5,500 crore in May. In the construction sector, they sold around Rs 2,660 crore, slightly down from Rs 2,686 crore the previous month. In the IT sector, FIIs sold about Rs 2,559 crore following sales of Rs 5,800 crore in May. In metals and mining, they sold Rs1,861 crore after being net sellers of Rs 953 crore in May.
For consumer durables, FIIs sold stocks worth Rs 953 crore, compared to Rs 760 crore a month earlier. In the auto and FMCG sectors, they sold Rs315 crore and Rs 245 crore respectively, following sales of Rs4,029 crore and Rs 4,173 crore in May.
The Indian markets experienced significant volatility in the first half of June due to exit polls and election results. There was a surge in buying on the day of the exit polls, but heavy selling pressure followed on the day of the election results, as the BJP secured fewer seats than expected. However, the stock markets showed a strong uptrend post-election results after a coalition government was formed, with analysts believing in policy continuity.
Meanwhile, FIIs remained buyers in the realty, telecom, consumer services, and chemicals sectors. They also began buying in the financial sectors and services after being net sellers in May.
FIIs are increasingly concentrating on realty stocks due to government emphasis on the housing sector, while telecom stocks are witnessing heightened interest in anticipations of tariff increases.
FIIs bought around Rs1,815 crore in realty stocks, Rs1,736 crore in telecom stocks, Rs1,607 crore in consumer services, and Rs923 crore in chemicals stocks. They also purchased Rs1,184 crore in services stocks after selling around Rs984 crore in May and bought Rs1,008 crore in financial sectors after selling over Rs8,583 crore the previous month.
FII flows
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