Foreign institutional investors (FIIs) have been cautious in terms of taking positions in Indian markets. After the massive selloff in June, FII buying picked pace but the buoyancy was short lived and foreign investors have again turned cautious about the Indian equity market in August, driven by concerns over valuation differentials between different market segments.
Total flows in August so far
As of now, FIIs have sold stocks worth Rs 28,671 crore through exchanges but have remained net buyers in the primary market, investing Rs 12,367 crore in August so far.
This brings the total net sell-off by FIIs in August to approximately Rs 16,304 crore, according to data from the National Securities Depository Limited (NSDL).
How have the flows been in H1CY24?
In the first half of the month, FIIs withdrew Rs 14,790 crore from financial stocks and also displayed bearish sentiment towards metals, services, construction, and auto stocks. However, certain sectors attracted FII interest.
Sector Wise Inflow
The FII buying has been concentrated in select sectors. Healthcare attracted Rs 3,462 crore, followed by consumer services at Rs 2,196 crore, FMCG at Rs 1,785 crore and the power sector saw inflows of Rs 1,169 crore.
Debt Market sees steady inflows
While FIIs have been cautious in the equity market, they have been investing steadily in the Indian debt market. So far this month, FIIs have infused Rs 11,366 crore into the debt segment, pushing the net inflow tally in the debt market to over Rs 1 lakh crore.
This follows a net investment of Rs 22,363 crore in July, Rs 14,955 crore in June, and Rs 8,760 crore in May, highlighting a consistent interest in the Indian debt market.
