Bull market frenzy? FIIs pardon IT companies despite muted growth, weak guidance

economictimes.indiatimes.com:

tech stocks which have been under scrutiny for reporting weaker-than-expected growth and guidance cuts in the June quarter. A bulk of the investment (Rs 11,514 crore) went into financial services, which have been a favourite of all big boys of Dalal Street amid solid credit growth. However, the pace of inflow in financial stocks slowed down compared to June when FIIs invested over 19,000 crore in the sector.

Capital goods continued to be in the list of top FII favourites as foreign investors spent Rs 5,633 crore in the sector. Macro data shows that the central and state capex recorded a YoY growth of 59% (Rs 2.8 trillion) and 63% (Rs 1 trillion), respectively, in FY24 so far. Besides capex play, other top sectoral picks included oil & gas, FMCG, telecom, auto and power.

Although the IT sector attracted only Rs 1,575 crore during the month, the investment stood out because FIIs have been net sellers in this pocket for the last few months. In the June quarter, IT was on top of the FII hate list as the sector recorded an outflow of Rs 9,154 crore from foreign investors even as mutual funds and LIC, India's largest domestic investor, showed faith in the potential of the country's tech prowess. 2023 is the third year in which the IT sector is seeing a continuous outflow of dollar money.