FIIs sold ₹25743 Crores in Jan 2024. But, the devil is in the details.

Yes, FIIs were net sellers in January 2024. They sold ₹25743 Crores. But if we dig into the sector-wise data, it shows a slightly different picture.

Please find below the sector-wise data for Jan 2024. Just look at the selling in the Financial Services Sector alone. Almost ₹30000 Crores.

If we exclude the Financial Services Sector, FIIs would be net buyers in Jan 2024. Looks like they sold significantly in some Private Banks and NBFCs.

This is how FIIs portfolio looks at the end of Jan 2024.

During the start of 2023, they had around 32% in Financial Services. Now it is down to less than 30% in Jan 2024.

The Capital Goods sector continues to be FII’s favourite sector. In Jan 2023, the Capital Goods Sector was 2.8% of the FII portfolio. In Jan 2024, the Capital Goods Sector is 4.5% of the FII portfolio. FIIs have doubled the share of the Capital Goods sector in their overall portfolio in the last 1 year.

Find below the net FII Inflows/outflows in the Capital Goods Sector over the last 1.5 years. They have been net buyers almost every month.

The point I wanted to make was that the FIIs are not selling significantly across all sectors. They are still adding IT, Capital Goods, Construction materials and Consumer Services stocks to their portfolio.

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