FII Tracker: Rs 20,000 crore of hot money chasing stocks in 4 sectors. Take a look! :-ET Nov23,2022

 

NEW DELHI: With financial stocks dominating the shopping list by a wide margin, foreign institutional investors or FIIs spent over Rs 20,000 crore in picking stocks from just 4 sectors in the first fortnight of November.

Out of the total investment of Rs 28,888 crore in between November 1-15, FIIs spent Rs 11,452 crore in financial services, shows NSDL data. Financial services are the biggest bet of FIIs in India and comprises over 34% of their total holding.

During the fortnight, FII investment in the FMCG sector, which has been hit by margin pressure amid soaring inflation, went up 7 times as compared to the previous fortnight to Rs 3,514 crore.

FII investment in IT and auto stocks during the period stood at Rs 3,005 crore and Rs 2,251 crore, respectively.

How FII investments have changed in 2 fortnights

Table with 3 columns and 24 rows. Currently displaying rows 1 to 24.

Financial Services	−605	11,452
FMCG	488	3,514
IT	2,610	3,005
Auto	1,477	2,251
Oil, Gas & Consumable Fuels	−497	1,765
Consumer Services	308	1,680
Capital Goods	525	1,640
Metals & Mining	277	1,620
Healthcare	664	719
Chemicals	281	675
Construction Materials	41	623
Construction	724	545
Services	−97	203
Forest Materials	37	34
Others	−27	22
Media, Entertainment & Publication	349	18
Utilities	−2	3
Sovereign	0	0
Diversified	−21	−2
Realty	−369	−61
Telecom	672	−95
Textiles	−12	−123
Power	654	−162
Consumer Durables	−30	−436

Table: ETMarkets.com  Source: NSDL  Get the data  Created with Datawrapper

The net selling, however, increased in consumer durables and textiles while it slowed down in case of realty. FIIs were also seen turning into net sellers in the power sector.

Amid hopes for a forthcoming policy pivot from the US Federal Reserve, FIIs have once again turned net buyers this month after selling Indian equities worth over Rs 1,38,000 crore so far in the calendar year 2022.

Should you follow the FII?

After the September quarter earnings, most brokerages have given a bullish outlook on banks as the net interest margins (NIMs) are likely to be maintained.

"NIMs among banks may have peaked as rising deposit rates may exert pressure going forward. But as policy rates are yet to reach the terminal rate, NIMs should sustain at these levels and any pick-up in corporate credit should be beneficial for banks," 

JM Financial

 NSE -0.42 % said

FMCG companies also saw marginal upgrades after Q2 where high revenue growth was largely driven by pricing. "The recovery in margin is expected to be slow given most FMCG companies would be looking to increase promotional offers and spend behind brands to focus on volume growth," 

ICICI Securities

 said.

In the case of IT companies, revenues were broadly in-line with street expectations in the quarter while margins are beginning to stabilize and show improvement. "Indian IT services companies faced significant cross currency headwinds for the past several quarters which is likely to reverse going ahead if current exchange rates prevail," JM Financial said.

(With data inputs from Ritesh Presswala)

(Disclaimer: Recommendations, suggestions, views and opinions given ..

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