Insurance stocks mopped up the highest foreign equity flows among all sectors in October as overseas investors remained net buyers for the second straight month.
Foreign portfolio investors infused nearly $1.05 billion into shares of insurers, the highest in seven months, according to data available on National Securities Depository Ltd.'s website. That's 60 percent of the $1.75 billion they ploughed into Indian stock markets last month.
Insurance companies returned between 4-54 percent gains in October, led by New India Assurance Company Ltd.'s 53.45 percent rally, followed by General Insurance Corporation of India (41.5 percent) and SBI Life Insurance Company Ltd. (17.17 percent)
Foreign investors continued to pour money into Indian markets after the government rolled back the higher tax surcharge on them—a month that had led to a selloff in July and August.
Insurance was followed by oil and gas sector, which received highest foreign fund inflows since April. The overseas investors funneled $423 million into oil and gas shares, $401 million of which came in the second half of October, NSDL data showed.
That comes as the S&P BSE Oil & Gas Index returned 7.5 percent in October, led by the rally in Bharat Petroleum Corporation Ltd., Indraprastha Gas Ltd. and Castrol India Ltd.
Reliance Industries Ltd. rose 9.9 percent during the period. Although the company is classified under oil and gas sector, about 32 percent of its revenue now is generated from its digital services, organised retail and other sectors.
The sector was followed by banks and miscellaneous shares—the stocks which do not fall in any sector-wise category.
What Foreign Investors Sold In October
Software and services sector witnessed the highest outflow in October. Overseas investors remained net sellers in the sector for the seventh consecutive month, offloading stocks worth $483 million last month.
The NSE Nifty IT Index, which comprises 10 technology shares, rose 0.12 percent during the period after declining the most in four months in September.
Telecom services witnessed the second-highest outflows in October, followed by marine port and services, and food, beverages and tobacco sector.
Some Key FPI Share Transactions
Full details of investments in individual stocks by overseas investors in October were not available. Bulk-deal data from the stock exchanges, however, revealed what some of the foreign funds bought and sold last month.
Oct: 18:
- Eveready Industries: Goldman Sachs India sold 18.75 lakh shares or 2.58 percent at Rs 38.8 each.
- Indiabulls Housing Finance: Wisdomtree Emerging Markets Smallcap Dividend Fund acquired 25.89 lakh shares or 0.61 percent stake at Rs 225.19 each.
Oct. 23:
- Indiabulls Housing Finance: AQR Emerging Equities Fund sold 40.15 lakh shares or 0.95 percent equity at Rs 233.96 each
Oct 24:
- Varun Beverages: Marina III (Singapore) sold 15.56 lakh shares (0.54 percent) at Rs 630.02 each
Oct. 25:
- Indiabulls Housing Finance: California State Teachers Retirement System sold 30.81 lakh shares (0.73 percent equity) at Rs 191.03 each.
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