$5 billion-bet! FIIs chased these 7 sectors in June; will dollar-shower continue on D-Street?

economictimes.indiatimes.com:

foreign portfolio investors (FPIs), with financial services at the top of the list. The financial services sector saw net inflows of Rs 19,229 crore ($2.3 billion) in June, which is nearly 9% higher from May. Since March, the Nifty Financial Services index has gained a whopping 13% and scaled a lifetime high earlier this week.

This 5-month winning streak for the sectoral index is the longest in 6 years. In the June quarter, the financial services sector saw cumulative inflows of Rs 44,590 crore ($5.4 billion), after witnessing outflows to the tune of Rs 16,004 crore ($1.9 billion) in the March quarter. The sector which saw the second highest inflows in June from FPIs was automobiles and auto ancillaries at Rs 5,821 crore.

However, this was lower than the Rs 8,700 crore of inflows witnessed in May. This sector has gained significant traction in the recent months due to the robust outlook for demand amid product launches and easing concerns over profitability. Moreover, growing focus into electric vehicles has driven both auto and auto component makers.

The Nifty Auto index has rallied more than 3000 points in four months and scaled a record high of 15,471 points on Thursday. The sector has seen foreign inflows for six months in a row till June. Capital goods has become another favourite sector for FPIs, as it has seen consistent inflows for five months.

Last month, FPIs poured in a whopping Rs 5,571 crore into the sector, which is more than 2 times the money they invested in May. Between February and June, FPIs have pumped in Rs 14,860 crore or $1.8 billion alone in the capital goods sector. Year-to-date, the BSE Capital Goods index has gained a whopping 23%.