FPIs chase India’s consumption story, pull money from telecom and realty | Personal Finance
Foreign portfolio investors (FPIs) pumped ₹16,621 crore into Indian equities between August 1 and 15, but the bigger story was where that money went — and where it came from. Financial services, automobiles and consumer-facing sectors emerged as the clear favourites, while telecom, capital goods, power and realty saw sizeable outflows, according to a note by Samco Securities.
Financials take the biggest chunk
Financial services attracted the largest FPI inflow during the August 1-15 period at ₹6,535 crore, accounting for the biggest sectoral allocation among the segments tracked in the report.
Autos followed with ₹4,405 crore, while Consumer Services attracted ₹3,398 crore. Healthcare and Information Technology also saw strong buying, with inflows of ₹2,910 crore and ₹2,530 crore, respectively.
FPIs pick consumption over capex as ₹16,621 crore floods Indian stocks
Consumption is the bigger underlying theme
The strongest signal, however, comes from looking at flows relative to the size of each sector’s existing Assets Under Custody (AUC).
Consumer Services recorded an inflow equivalent to 1.23% of its previous AUC, the highest among the sectors tracked. More importantly, this was the third consecutive period in which consumer-oriented sectors led AUC-linked inflows, suggesting that institutional interest in consumption businesses is not merely a one-off move.
Autos ranked second, with investment rising by 0.82% of previous AUC. Consumer Durables saw a 0.74% increase, IT 0.64% and Healthcare 0.55%.
But FPIs are exiting telecom and capital-intensive sectors
Telecom recorded the largest FPI outflow at ₹3,322 crore, followed by Capital Goods at ₹1,556 crore, Power at ₹1,164 crore and Realty at ₹1,014 crore. Construction saw an outflow of ₹404 crore.
On an AUC-adjusted basis, telecom again stood out negatively. FPI investment in the sector declined by 0.89% of previous AUC, the steepest fall among the sectors covered.
Realty followed with an outflow equivalent to 0.82% of previous AUC, while Power and Construction declined by 0.43% and 0.33%, respectively. Capital Goods fell 0.32%.
This creates an interesting contrast: even though India’s broader investment and infrastructure story remains important, foreign portfolio investors during this period appeared to be rotating away from several capital-intensive sectors.
The preference for financial services, autos, consumption, healthcare and IT suggests that global investors are seeking exposure to areas where they see relatively strong demand, liquidity and earnings visibility. At the same time, the selling in telecom, realty, power and capital goods suggests that investors are becoming more selective within India’s broader growth story.
