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Economic Times
3 days ago
- Business
- Economic Times
Foreign investors withdraw Rs 14,422 crore from IT stocks amid July sell-off
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. Foreign investors heavily sold IT stocks in July, pulling out ₹14,422 crore due to weak quarterly results, headcount reductions, and global macroeconomic uncertainty. This selling pressure extended to other sectors, including financial services, oil and gas, and realty, as investors trimmed exposures and booked profits. Concerns about potential NPA increases in export-oriented sectors further influenced investment decisions. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads 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 January and June, the sector saw foreign outflows of ₹30,600 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."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 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 and gas and realty sectors saw foreign outflows of ₹4,177 crore and ₹3,684 crore, respectively, in the second half of the 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 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.
Time of India
3 days ago
- Business
- Time of India
Foreign investors withdraw Rs 14,422 crore from IT stocks amid July sell-off
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.
Economic Times
23-04-2025
- Business
- Economic Times
IT bore brunt of FPI pullout in April amid tariff turmoil
Mumbai: The information technology (IT) sector saw the highest selling from overseas investors between April 1 and 15 as concerns over the impact of an expected US downturn heightened risk-off sentiment. Foreigners sold IT shares worth ₹13,828 crore in this period, after pulling ₹8,451 crore out of sector in March. In 2024, foreign investors pumped over ₹14,000 crore into the sector. ADVERTISEMENT "A significant chunk of orders in the IT sector are driven by the US, and since the outlook on those orders is uncertain given the concerns of a slowdown in the US, the sector has seen highest outflows in the first half of April," said Divam Sharma, fund manager, Green Portfolio PMS. Overseas investors offloaded shares in the financial services and capital goods sectors worth ₹4,501 crore and ₹3,019 crore, respectively. While capital goods had seen outflows last month, financial services had received foreign inflows worth over ₹14,000 crore. "Most sectors are anticipated to be impacted by the confusion on Trump tariffs but sectors with premium valuations are more prone to higher foreign outflows," said UR Bhat, director, Alphaniti. In the first half of April, foreigners sold Indian equities worth ₹37,108 crore across 17 sectors after infusing ₹31,877 crore in the second half of March, according to NSDL. Sharma said foreign sell-off in financial services has tempered after the recent outflows because of comfortable valuations."Bank Nifty has performed well owing to the short squeeze in banking stocks, and since it is a domestic-facing sector, tariffs are not likely to have a major impact on the sector," he said. ADVERTISEMENT Metals and mining, oil and gas, automobiles and construction sectors also saw foreign outflows over ₹2,000 crore each. They bought shares worth ₹3,181 crore across 6 ix sectors in first half of April, with elecommunications receiving the highest inflows of ₹2,137 crore. Foreign investors have pumped over ₹17,600 crore into stocks in previous 5 trading sessions, but they remain net sellers in April of ₹16,670 crore. (You can now subscribe to our ETMarkets WhatsApp channel)
