Foreign players sell more of index-heavy Financial Services, FMCG & Capital Goods in Feb
Indian equities worth ₹26,610 crore across 16 sectors between February 1 and 15 according to data from NSDL.
Financial services continued to bear the brunt of unabated foreign selling as investors dumped shares of ₹5,344 crore in the first 15 days of February after selling around ₹25,000 crore in January. In 2024, they pulled out shares worth ₹58,280 crore from the sector.
Banks and lenders are bearing the brunt of the foreign selling because of their dominant weights on the Sensex and Nifty. So when overseas investors sell Indian stocks, they end up selling bank shares the most. Moreover, concerns over the rise in bad loans are also weighing down sentiment.
«The delinquencies are likely to rise in the banking sector in the personal loan and credit card segment while the credit offtake is anticipated to fall, which is negative for the sector in the next couple of quarters, said Siddarth Bhamre, head of institutional research, Asit C Mehta Intermediates.
Fast Moving Consumer Goods (FMCG) and capital goods witnessed foreign selling worth ₹4,336 crore and ₹3,206 crore respectively after selling around ₹5,000 crore in each sector last month. The Union Budget on February 1 when the government cut income taxes to boost consumption, was expected to be a trigger for these consumer-related stocks but after the initial surge the rally fizzled out. Investor appetite for capital goods has dimmed in the absence of immediate triggers
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