Synopsis
Foreign investors injected significant capital into India’s energy and telecom sectors in the latter half of November, continuing a trend from earlier in the month and October. While telecom saw substantial inflows, the oil and gas sector also attracted considerable investment. Conversely, FMCG and automobile sectors experienced outflows as investors booked profits and re-evaluated high valuations.
IANS IT, which saw aggressive foreign selling this year, witnessed a moderation in the pace of outflows as global investors offloaded shares worth ₹921 crore in the latter half of November.
Mumbai: Energy and telecom received the highest foreign flows in the second part of November, continuing the accumulation in both sectors seen in the earlier part of the month and in October. Overseas fund managers pumped ₹4,913 crore into telecom during this period, following inflows of ₹9,413 crore in the first half of the month, boosted by block transactions in Bharti Airtel, where promoters cut their stakes. Foreign investors pumped in over ₹33,000 crore into the sector between January and October.
In the oil and gas and consumable fuel space, overseas investors bought shares worth ₹4,177 crore after investing ₹9,129 crore in October.
“The deployment of foreign funds into Reliance Industries may have also boosted inflows into the oil and gas space,” said Pankaj Pandey, head of Retail Research at ICICI Direct. “While the refining business has performed well, a significant portion of foreign inflows into Reliance may be due to its thriving telecom business.”
Overseas investors purchased shares worth ₹13,049 crore across eight sectors in the second half of November, as per NSDL data. In the first half of the month, they sold shares worth ₹21,021 crore across 16 sectors. Global investors invested over ₹1,000 crore in the capital goods and consumer durables sectors in the last 15 days of November.
Agencies November 16-30 Overseas investors injected ₹4,913 cr into telecom stocks as Bharti block deals set the momentum, bought shares worth ₹13,049 cr across 8 sectors; FMCG sees highest outflows
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