FPI Watch: IT Stocks Witness Highest Monthly Outflows In Over Three Years This July

The information technology shares witnessed the highest FPI outflows in more than three years during the previous month, according to data compiled by NDTV profit with the information available on National Securities and Depositories Ltd.

The overseas investors pulled out $2.3 billion in IT stocks in July, according to NSDL data. That's the highest outflow since March 2022. The sharp pullback came as the NSE Nifty IT Index declined over 9% in July, underperforming the benchmark Nifty 50, which fell 2.9% during the same period.

The selloff in tech shares was triggered by the weak quarterly results and a slowdown in deal wins by major IT firms, coupled with Tata Consultancy Services Ltd.'s announcement of 2% workforce reduction.

After IT, Financial Services saw the next biggest FPI outflow at $671 million last month, NSDL data showed. The IT and financial services sectors were followed by realty ($450 million), automobile and auto components ($412 million), and oil, gas & consumable fuels ($372 million).

In contrast, FPIs poured $929 million into miscellaneous stocks that do not fall under any specific sector during July, NSDL data showed. That was the highest inflow into this category in nearly five years, according to data compiled by NDTV Profit.

The services sector followed with $401 million in inflows. That was followed by metals & mining ($388 million), consumer services ($347 million), and fast moving consumer goods ($175 million).

To be sure, detailed data on FPI flows into individual stocks is not publicly available through NSDL, BSE, or NSE. However, bulk and block deal disclosures on the exchanges showed the following stock-specific FPI actions in July:

July 1:

• Kajaria Ceramics: JP Morgan Funds sold 8.85 lakh shares (0.56%) at Rs 1,067.88 apiece.

• Bharti Airtel: Goldman Sachs (Singapore) bought 1.03 lakh shares at Rs 2,009.6 apiece.

• Hindustan Aeronautics: Goldman Sachs (Singapore) bought 3.06 lakh shares at Rs 4,917 apiece.

• HDFC Bank: Goldman Sachs (Singapore) bought 76,851 shares at Rs 2,001.5 apiece.

• ICICI Bank: Goldman Sachs (Singapore) bought 1.26 lakh shares at Rs 1,445.8 apiece.

• Reliance Industries: Goldman Sachs (Singapore) bought 7.48 lakh shares at Rs 1,500.6 apiece.

• Varun Beverages: Goldman Sachs (Singapore) bought 15.25 lakh shares at Rs 457.55 apiece.

• Voltas: Goldman Sachs (Singapore) bought 3.88 lakh shares at Rs 1,314.1 apiece.

• Kaynes Technology: Goldman Sachs (Singapore) bought 67,690 shares at Rs 6,095 apiece.

July 11:

• Dr Agarwals Health Care: BofA Securities Europe SA bought 2.7 lakh shares (0.09%) at Rs 436 apiece; Morgan Stanley Asia Singapore PTE sold the same quantity at the same price.

July 22:

• 360 ONE WAM: BC Asia Investments X Ltd sold 1.5 crore shares (3.71%) at an average price of Rs 1,160.76 apiece.

July 24:

• Cigniti Technologies: Morgan Stanley Asia Singapore bought 1.65 lakh shares (0.6%) at Rs 1,599.1 apiece.

July 25:

• Authum Investment & Infrastructure: Goldman Sachs (Singapore) bought 8.88 lakh shares (0.52%) at Rs 2,250 apiece.

July 28:

• UPL: BofA Securities Europe SA bought 5.54 lakh shares (0.06%) at Rs 538 apiece.