Energy and telecom continue to attract foreign flows in November

Mumbai: Energy and telecom received the largest foreign flows in the second half of November, continuing accumulation in both sectors as seen in the first part of the month and in October. Overseas fund managers pumped ₹4,913 crore into telecom during this period, after inflows of ₹9,413 crore in the first half of the month, boosted by block trades in Bharti Airtel, where promoters cut their stakes. Foreign investors pumped in over ₹33,000 crore into the sector between January and October. In oil, gas and consumable fuels, foreign investors bought shares worth ₹4,177 crore after investing ₹9,129 crore in October.

“The infusion of foreign funds into Reliance Industries may have also boosted inflows into the oil and gas sector,” said Pankaj Pandey, Head of Retail Research at ICICI Direct. “While the refining business has performed well, a significant portion of the foreign inflows into Reliance could be due to its booming telecom business.”

Foreign investors bought shares worth ₹13,049 crore across eight sectors in the second half of November, NSDL data shows. In the first half of the month, they sold shares worth ₹21,021 crore across 16 sectors. Global investors invested over ₹1,000 crore in the capital goods and consumer durables sectors in the last fifteen days of November.

Foreign investors sold shares worth ₹10,722 crore across 15 sectors in the second half of November, with fast-moving consumer goods (FMCG) seeing the highest outflows at ₹2,722 crore during the period. They have withdrawn ₹2,042 crore in the first half of the month. Between January and October, foreign investors dumped shares worth ₹26,178 crore in the sector.

“FMCG stocks continue to trade at peak valuations, which is why foreign investors are pulling out of the sector, but selling is not heavy either,” said Bhavik Joshi, business head at INVasset PMS.

The auto sector witnessed some profit booking as these stocks rose significantly after the GST reforms, he said. Foreign investors offloaded stakes worth over ₹1,000 crore in autos and financial services in the second half of November. IT, which has faced aggressive foreign selling this year, witnessed a moderation in the pace of outflows as global investors offloaded shares worth ₹921 crore in the second half of November.