FPIs Sell ₹14,116 Crore in Equities in First Half of September; Financials, Auto Lead Outflows

Foreign portfolio investors returned to selling Indian equities in the first half of September, pulling out ₹14,116 crore between September 1 and 15, with financial services and automobiles accounting for a large part of the outflows. 

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The September numbers marked a change from August, when FPIs were net buyers of around ₹29,631 crore in equities for the full month. The shift was particularly sharp in sectors that had attracted foreign money only a few weeks earlier. 

Financial services recorded the largest outflow during the first half of September, while automobiles, oil and gas, FMCG and power also saw sizeable selling. Healthcare and construction, on the other hand, continued to attract foreign capital. 

Financial services sees ₹6,204 crore outflow 

Financial services witnessed FPI selling of ₹6,204 crore between September 1 and 15. 

The reversal was substantial when compared with the first half of August, when foreign investors had put ₹6,535 crore into the sector. Taken together, the movement between the two periods amounted to a ₹12,739 crore swing. 

Automobile and auto component stocks followed a similar pattern. FPIs sold ₹2,670 crore during the first half of September after buying ₹4,405 crore between August 1 and 15. 

Oil, gas and consumable fuels also moved into the selling column. The sector recorded FPI outflows of ₹2,385 crore in September 1-15, against purchases worth ₹490 crore during the corresponding period in August. 

IT and consumer durables also move into selling 

Information technology stocks saw foreign investors pull out ₹960 crore during the first half of September. In comparison, the sector had attracted ₹2,530 crore during August 1-15. 

Consumer durables registered a similar reversal. FPIs sold ₹397 crore in the first half of September after investing ₹1,472 crore during the first 15 days of August. 

FMCG saw selling increase to ₹2,029 crore from ₹189 crore in the first half of August. 

The power sector also recorded heavier withdrawals, with FPI selling rising to ₹1,653 crore from ₹1,164 crore across the two comparable periods. 

Healthcare and construction attract foreign money 

Foreign flows were not negative across the board. 

Healthcare attracted ₹2,114 crore during September 1-15. While the sector remained a notable destination for foreign capital, the amount was lower than the ₹2,910 crore invested during the first half of August. 

Construction moved in the opposite direction to several other sectors. After FPIs sold ₹404 crore worth of construction stocks during August 1-15, they invested ₹930 crore in the sector during the first half of September. 

Services also continued to attract money. FPI purchases increased to ₹905 crore from ₹590 crore in the comparable August period. 

Chemicals remained another sector with positive flows, though purchases moderated to ₹228 crore from ₹315 crore. 

Consumer services buying drops sharply 

Consumer services continued to receive foreign investment, but the pace of buying slowed considerably. 

FPI inflows into the sector stood at ₹422 crore in the first half of September, down from ₹3,398 crore during August 1-15. 

Telecommunications remained under selling pressure, although withdrawals moderated. FPIs sold ₹991 crore worth of telecom stocks in September 1-15, compared with ₹3,322 crore in the first half of August. 

Capital goods also saw the pace of selling decline sharply. Outflows fell to ₹108 crore from ₹1,556 crore. 

Realty remained in the negative column, with FPIs withdrawing ₹762 crore during the first half of September, compared with ₹1,014 crore during August 1-15. 

FPI equity assets under custody fall to ₹67.46 lakh crore 

The sector-wise changes coincided with a decline in the overall value of equities held by foreign portfolio investors. 

According to NSDL data cited in the report, FPI equity assets under custody stood at ₹67.46 lakh crore as of September 15. 

That compares with ₹70.38 lakh crore at the end of August. 

The first-half numbers show a clear change from August’s net buying, but the movement was uneven across sectors. While financials, automobiles and several other major groups faced withdrawals, healthcare, construction, services and chemicals continued to receive foreign investment during the period.