logo
Foreign investors withdraw Rs 14,422 crore from IT stocks amid July sell-off

Foreign investors withdraw Rs 14,422 crore from IT stocks amid July sell-off

Time of India3 days ago
Mumbai: Information Technology (IT) stocks continued to bear the brunt of foreign selling, with outflows of ₹14,422 crore in the second half of July. These investors pulled over ₹5,000 crore from the sector in the first 15 days of the month.
Between January and June, the sector saw
foreign outflows
of ₹30,600 crore.
Although the tariffs currently don't apply to services, the IT sector remained under pressure due to weak June-quarter numbers across the board and significant headcount reductions, said analysts.
"The valuations in the sector have not yet fully factored these headwinds in addition to the global macro-economic uncertainty," said UR Bhat, co-founder & director, Alphaniti. "Foreign investors are trimming their exposure because IT is one of the sectors with their maximum weightage."
The
Nifty IT Index
fell 11.8% in the last month, against a 4.5% drop in the benchmark Nifty. Foreign investors sold shares worth ₹34,974 crore across 12 sectors in the last 15 days of July,
NSDL
data showed. These investors dumped ₹6,720 crore in financial services after buying ₹8,946 crore in June.
Agencies
"Though the quantum of selling is relatively lesser compared to the buying seen in the earlier three months, FPIs seem to have partially squared off their bullish bets in the index," said Sudeep Shah, vice president and head of technical and derivative research, SBI Securities.
Bhat said banks with large exposure to export-oriented sectors such as chemicals, textiles, gems and jewellery, and auto parts could see an uptick in NPAs due to the tariffs. "Overseas investors are likely to be selective on the scrips that they buy," he said.
Oil and gas and realty sectors saw foreign outflows of ₹4,177 crore and ₹3,684 crore, respectively, in the second half of the month.
Profit booking in Reliance Industries, the stock with the highest weight in the Oil & Gas Index, weighed on sentiment in the period, said Shah.
"The global implications are significant on the oil markets if India stops buying crude oil from Russia and the uncertainty is weighing heavily on the outlook for these stocks leading to outflows," said Bhat.
Foreign investors offloaded ₹2,425 crore in automobiles in the second half of July and sold over ₹1,300 crore each in consumer durables and construction.
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

How to tackle turbulent times
How to tackle turbulent times

New Indian Express

time40 minutes ago

  • New Indian Express

How to tackle turbulent times

It will be an understatement to say that there is chaos in the financial markets today. As the world grapples with the impact of US tariffs unleashed one country at a time, India suddenly finds itself in a pickle. You can figure that out from the trend in the currency and the stock markets. These markets pick up signals of uncertainty quickly. They loathe it, and any threat to future profits is viewed negatively. Those in the currency markets foresee India's exports getting disrupted, and those in the stock market look at the negative impact on future corporate profits. India's Nifty has witnessed a sharp selloff over the past week while other major global indices have held firm or rallied. There are specific concerns investors have about India due to President Donald Trump's unilateral action of additional tariffs on the purchase of Russian crude oil. Despite all of that, the big picture in India is not so worrying. India's government finances are strong, with no risks to the government revenue. The economic growth is expected to be well over 6%, according to most pundits. The Reserve Bank of India's monetary policy committee has put out a benign outlook for the consumer price inflation. That indicates little or no risk of inflation ahead and a downward trend in interest rates. You may want to read these trends and move forward cautiously when it comes to money. There is a risk to your investments. However, there are ways to work your way. You can take a leaf out of the ancient Greek philosophy or Stoicism. The concept evolved in the third century BC. The concept of 'control your controllables' means that your habits with money are far more critical than the external turmoil around you. A disciplined approach to investing is better than trying to time the market in turbulent times. A market fall in such a state of uncertainty could be like catching falling knives.

These large-caps have ‘strong buy' & ‘buy' recos and an upside potential of more than 22%
These large-caps have ‘strong buy' & ‘buy' recos and an upside potential of more than 22%

Economic Times

time42 minutes ago

  • Economic Times

These large-caps have ‘strong buy' & ‘buy' recos and an upside potential of more than 22%

It might be a bit too early to say, but the way things panned out during Monday's trade suggests that the bias of the current volatility has probably turned neutral from bearish.A typical change in sentiment happens when the Nifty and large-caps are relatively stable, but the mid-caps are still under pressure. It is then that we see a change in the market breadth of the mid-cap things, though: One, as we said, it is too early to say. FONT SIZE SAVE PRINT COMMENT

Sensex rebounds, NSDL rallies, MF inflows smash records
Sensex rebounds, NSDL rallies, MF inflows smash records

Economic Times

time4 hours ago

  • Economic Times

Sensex rebounds, NSDL rallies, MF inflows smash records

In this episode of Two Sharp with ET, Nisha Poddar breaks down two big stories. First, equity mutual funds hit a historic high in July, with ₹42,702 crore in inflows driven by sectoral, small-cap, and flexi-cap schemes, while debt funds bounced back strongly. Second, Indian markets snap a six-week losing streak, NSDL shares extend their post-listing rally, oil markets stay calm despite Trump's tariff threat, and banks begin stress-testing exporters in key labour-intensive sectors. Show more 01:30 06:15 03:33 06:14 04:09 01:37 05:22 01:19 03:53 06:23 01:23 05:15 03:42 01:51 04:46 01:43 01:48 01:31 01:31 06:54 01:21 04:20 06:09 06:11 05:09 01:22 04:21 03:33 04:35 02:26 01:57 04:06 01:29 01:33 04:25 03:59 07:10 01:56 06:05 01:47

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store