How FIIs spent Rs 51,000 crore in Indian equities in August. Here's the data

NEW DELHI: As foreign institutional investors or FIIs started to bet big on India in August with a total equity purchase of over Rs 51,000 crore in the month, banks and financial services turned out to be favourite stocks.

NSDL data shows that FIIs invested a total of Rs 12,636 crore in financials in August, followed by Rs 8,509 crore in healthcare, Rs 5,655 crore in consumer services and Rs 3,736 crore in auto and auto components.

Earlier in July, when FIIs turned buyers after nine months of non-stop selling of Indian equities, financials were on the sell list. IIFL said the FPI inflow into banks and financials was the second highest since February 2021 ($1.96 billion). “Inflow is after large outflows of $6.38 billion and $12.39 billion seen over the last 6 months and 1-year period, respectively,” it said.


IT stocks, which have been under pressure on demand slowdown and margin impact related worries, were also on the buy list of FIIs as they invested Rs 397 crore in August against sell-off of Rs 4,665 crore in July.

"IT witnessed buying, breaking an 11-month selling streak. In the last 6 months and 1 year, this sector had faced second highest outflows after financials," said a report by IIFL Alternative Research.

FMCG stocks, which was the top bet in July, saw reduced inflow of Rs 3,490 crore, shows NSDL data.

FIIs continue to remain net sellers in the realty sector last month with a net outflow of Rs 1,485 crore. The only other sector in which FIIs sold stocks was textiles.


Sector allocation trend shows that FII allocation in capital goods (~2.5 per cent) continued to rise for the fourth consecutive month and dropped in IT (~10.7 per cent) for the fifth consecutive month and is at its lowest level since March 2018.

At 5.5 per cent, FII allocation in power is highest since January 2018 as they have been increasing the allocation in the sector in the last one year.

FIIs have also raised bets on auto stocks as their allocation in the segment is at its highest (5.6 per cent) since March 2019.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)