Nifty 50 Hits 20,000: This Sector Saw $14.7-Billion Outflows As Index Doubled
India's benchmark index Nifty 50 doubled to 20,000 within 38 months since the NSE benchmark was last at 10,000 in June 2020.
One of the biggest characteristics of this rally are the domestic and foreign flows. According to data available on NSDL, foreign portfolio investors net bought $31.50 billion worth of stocks between June 30, 2020 and August 31, 2023. To put it in perspective, more than half of this—about nearly $18.24 billion—has come from April 1, 2023 to Aug. 31 in the current financial year.
IT Sector Outflows
But one sector that saw the foreign money outflow since June 30 is information technology. FPIs sold IT stocks worth $14.7 billion, a large part of this happening since April 2022. Nearly $8.2 billon of outflows took place since December 2021, according to data collated from NSDL, when FPIs turned negative on the sector.
In the current financial year, FPIs have net sold $458 million worth of equities but have been buyers of $693 million worth of stocks since July 16.
Capital goods witnessed $1.4 billion in investments since July 16.
Financial services including banks, NBFCs and insurance witnessed net FPI inflows of $5.14 billion or 16.3% of the total inflows since June 30, 2020.
This was followed by FMCG, and auto and auto components, data showed.
Nearly 62% of the FPI net inflows came since April this year. Net investments flowed largely into financial services, auto, capital goods, consumer services, FMCG and healthcare. These six sectors account for nearly 80% of the net FPI investments. IT sector saw outflows of $458 million.
At the end of Aug. 31, FPIs held $644.4 billion in assets under custody. Financial services accounted for 32.9%, while oil & gas and IT accounted for 8.9% and 9.7%, respectively. This was followed by FMCG and auto.
The others sector that saw FPI net inflows of $7.9 billion of the total assets under custody. This sector witnessed net investments of $3.9 billion in August 2020, according to NSDL data.
-
High US Salaries, No Green Card Certainty: The Financial Calculation Facing Indian H-1B Families
The suspension of PERM processing at eight technology employers does not cancel existing H-1B visas. What it does is force a question many Indian families have been avoiding: is the US salary worth tying your career and family plans to one employer?
-
Swiggy vs Eternal: Food Delivery's Two Rivals Are No Longer In The Same Race
Eternal is building a private AI assistant, dark.ai. Swiggy is still working out how to make Instamart pay, with an operating loss of Rs 895 crore in the July-September quarter while Blinkit stayed profitable.
-
Where You Live Shapes How You Get To Work | The Reason Why
Two-wheelers are the most popular way to get to work in India, accounting for nearly 43% of workplace commutes.
-
Unhedged Position: Can India See An Indonesia-Style Time Correction?
The Nifty is trading below levels it first clocked in 2024. Is there, then, as I have suggested in the headline, potential that the current time correction drags on painfully for the next three-five, even ten years?
-
Navigating Friction And Energy Realities: An Analysis Of Marco Rubio's October Visit To India
Occurring at a critical juncture marked by stalled trade negotiations and escalating geopolitical pressures over global energy supplies, the visit offers a profound window into modern US-India relations.
-
India Exports Capital. Why Not Export Trusteeship?
The big question, then, is whether India can build an institution that global borrowers, investors, banks, and lawyers can trust, even without an Indian connection.
-
France's Economy & Politics Are In Crisis | The Reason Why
Let's look at how the French economy and politics evolved under Nicolas Sarkozy, Franois Hollande and Emmanuel Macron.
-
You May Inherit The Business. You Must Earn Its Credibility.
Succession tests the founder's ability to share authority as much as it tests the next generation's readiness to assume it.
-
Signing Deals Is One Thing; Making Them Work Is Another | The Week In Whys
Sometimes, things don't turn out as planned. Indian companies have lost some bids to rivals, some projects won't produce until 2030.
-
FOMC Wall, PERM Suspension, Hospital Stocks | Talking Points This Week
A PERM suspension would directly affect green-card sponsorship rather than H-1B visas, so the near-term earnings impact could remain relatively limited. The key question is whether this marks a new phase in US scrutiny of Indian IT.
