Foreign investors dumped shares of these sectors, one was hit hard
The movement of the Indian stock market largely depends on the action of foreign portfolio investors (FPIs). When they put money in, the market goes up and when they take out money, the stock market starts falling. In January 2024, foreign investors were seen dumping shares in 7 sectors. One sector was lost after all. However, while buying in some sectors, new positions were also created.
Foreign portfolio investors dumped a total of Rs 40,300 crore ($4.8 billion) in January. Before this, in the two months of November and December 2023, he had invested a lot of money in the Indian market. The sector that foreign investors were bent on killing in January was Financial Services. Out of Rs 40,300 crore, only Rs 30,000 crore was sold in this sector.
According to NSDL data, these same investors had also bought shares worth Rs 29,000 crore of the same sector in December 2023, i.e. just a month ago. Overall, the attitude of foreign portfolio investors towards this sector was like that of ‘retail traders’ who switch sectors and shares very frequently. HDFC Bank was the most hit stock by foreigners in the financial services sector. The banking sector giant fell by 14 percent in the month of January itself. Actually, this happened because the quarterly figures of the bank were not encouraging.
Consumer goods and automobile sectors were also the target of FPIs, with selling worth Rs 2,000 crore each. There was purchasing in both these sectors in December. Foreign investors also showed no mercy on the metal and mining and media and entertainment sectors