What Foreign Investors Bought And Sold In September
Foreign investors piled into miscellaneous stocks the most in September as, buoyed by the surprise corporate rate tax cuts, they turned buyers first time in three months.
Insurance and banking sectors saw the second and third-highest net inflows, according to data available on National Securities Depository Ltd.'s website.
Foreign portfolio investors pumped about $1.07 billion into the equity market last month, ending a three-month selloff triggered by a higher tax surcharge that was later rolled back. That pushed Nifty 50 higher by 4.09 percent in September, snapping three months of losses.
The overseas buyers remained net sellers in the first 15 days of September, pulling out $286 million. They, however, pumped in $1.35 billion in the second half of the month after Finance Minister Nirmala Sitharaman cut the corporate tax rate to among the lowest in Asia to revive growth.
Where Did Foreign Investors Park Their Money?
Of the total inflows, about 90 percent or $968 million were invested in miscellaneous stocks that don’t fall in any specific sector, NSDL data showed.
This was followed by the insurance as FPIs injected $567 million into the sector last month, remaining buyers for the 10th straight month.
Banking sector received third-largest inflows. Foreign investors parked $290 million in the sector, the highest in five months. This was followed by automobiles and components industry, which received the highest inflows since April. Capital goods, household and personal products and healthcare services were the other sectors that received foreign inflows.
What Foreign Investors Sold In September
Software and services sector witnessed the highest outflow in September. Overseas investors remained net sellers in the sector for the sixth consecutive month, selling stocks worth $386 million last month.
The NSE Nifty IT Index, which comprises 10 technology shares, declined 2.94 percent in September, the most in four months.
Food, beverages and tobacco sector witnessed the second-highest foreign fund outflows as overseas investors remained net sellers for the third straight month, pulling out $241 million.
The sector was followed by non-banking financial companies, and pharmaceuticals and biotechnology with foreign investors pulling out $150 million and $129 million, respectively.
Full details of investments in individual stocks by overseas investors in September were not available. Bulk-deal and offer-for-sale data from the NSE, however, revealed what some of the foreign funds bought and sold last month.
On Sept. 12:
- Abu Dhabi Investment Authority acquired 9.65 lakh shares (0.69 percent) at Rs 1,482.5 each.
- Societe Generale acquired 13.58 lakh shares (0.98 percent) at Rs 1,482.5 each.
- Master Trust Bank of Japan sold 1.76 lakh shares (0.57 percent) at Rs 10.45 each.
On Sept 13:
India Energy Exchange
- Amansa Holdings acquired 1.09 crore shares (3.7 percent) at Rs 115.18 per share.
- Agri Power and Engineering Solutions sold 93.8 lakh shares (3.1 percent) at Rs 115.3 each
On Sept. 28:
- Japan-based Nippon Life Insurance announced acquisition of 75 percent stake in Reliance Nippon Life AMC from Reliance Capital.