What Foreign Investors Bought And Sold In January
Foreign investors remained net buyers for the fifth consecutive month in January.
Foreign portfolio investors piled into stocks outside the key sectors as they remained net buyers for the fifth straight month in January, ahead of the Feb. 1 budget.
Overseas investors funnelled as much as $1.69 billion into Indian equities last month, National Securities Depository Ltd. data showed. That came as India’s NSE Nifty 50 halted its four-month gaining streak—the longest in nearly three years. The 50-stock index declined nearly 1.7 percent in the first month of 2020.
About 85 percent—or $1.43 billion—of foreign inflows went into miscellaneous stocks that don’t belong to any sector or category, the depository data showed. The non-categorised stocks received the highest monthly inflow since March 2018.
Oil and gas companies received the second-highest inflows as overseas investors infused funds for the fourth straight month.
That’s despite S&P BSE Oil & Gas Index’s 5.6 percent fall last month, largely on the back of declines in Oil & Natural Gas Corporation Ltd. and Hindustan Petroleum Corporation Ltd.
Reliance Industries Ltd. fell 6.8 percent during the period. Although the company is classified under the oil and gas sector, digital services, organised retail, among other arms, currently generate more than a third of its revenue.
Indraprastha Gas Ltd. rose 18.5 percent, while Gujarat State Petronet Ltd. and Castrol India Ltd. gained 15.7 percent and 4.5 percent, respectively.
Sectors like software and services, telecom services, automobiles and auto components followed in receiving foreign investment.
What Foreign Investors Sold In January
The food, beverages and tobacco sector witnessed the highest net outflow in January after overseas investors sold stocks worth $174 million last month. Banks, and electric and other utilities also saw outflows.
The full details of investments in individual stocks by overseas investors in January wasn’t available. Bulk-deal data, however, revealed what some of the foreign funds bought and sold last month.
On Jan. 10
- Sadbhav Infra Projects: Nomura Group sold 1.34 crore shares, or 3.8 percent stake, at Rs 38.98 each.
On Jan. 25
- Indiabulls Housing Finance: Credit Suisse acquired 22.36 lakh shares, or 0.53 percent stake, at Rs 323.25 each.