When it comes to profit booking, foreign portfolio investors (FPIs) in India have their own giant ‘Magnificent 7’. In the US equity market, ‘Magnificent 7’ is used for seven shares that jointly contributed more than half of the market capitalization growth. In the last five months, seven areas in India have been hit by the best selling of FPIs.
FPI has sold Rs 2.1 lakh crore in Indian shares since October. There are seven heavy -selling areas – financial services, oil and gas, automotive (auto) and auto components, FMCG, consumer services, construction and electricity – from which Rs 2.04 lakh crore. This is 96 percent of the total sales.
Foreign investors sold shares of financial services sector worth Rs 52,488 crore. He sold Rs 50,565 crore in oil and gas stocks, Rs 32,067 crore in vehicle stocks, Rs 28,108 crore in FMCG and Rs 17,005 crore in consumer service stocks.
In contrast, Pure buyers were pure buyers in areas such as FPI Information Technology (Rs 6,000 crore), real estate (Rs 3,258 crore) and telecom (Rs 738 crore). He also showed interest in textile and chemical shares.
Chokalingam ji, the founder of Equinomics Research, explained the reason for these trends, saying, “The devaluation of the rupee has benefited Indian IT firms. US President Donald Trump has also avoided imposing tariffs on Indian IT exports. Realty shares (whose evaluation was low) has become attractive again due to continuous demand and no signal of recession in real estate prices. Meanwhile, telecommunications remains one of the some major development areas amid challenging comprehensive economic scenario. ‘
Despite the selling, the most sectoral allocation of FPI in the financial services sector remained (30.83 percent). This was followed by IT with 9.87 percent and oil, gas and consumer fuel with 7 percent. FPI selling started in October 2024, due to which China’s incentive measures were measures and China took these measures to bring its economy back on track.
Global concerns deepened after Trump became US President as his policy proposals were seen as a upsurge in the global economy. This change weakened the attraction of emerging markets like India and increased demand for American debt securities. Since taking over, President Trump has partially implemented his tariff threats, has postponed some and exempted the products under free trade agreements.
First Published – March 9, 2025 | 10:31 pm IST