Energy, telecom continue to draw foreign flows in Nov

Mumbai: Energy and telecom received the highest foreign flows in the second part of November, continuing the accumulation in both sectors seen in the earlier part of the month and in October. Overseas fund managers pumped ₹4,913 crore into telecom during this period, following inflows of ₹9,413 crore in the first half of the month, boosted by block transactions in Bharti Airtel, where promoters cut their stakes. Foreign investors pumped in over ₹33,000 crore into the sector between January and October.

In the oil and gas and consumable fuel space, overseas investors bought shares worth ₹4,177 crore after investing ₹9,129 crore in October.

“The deployment of foreign funds into Reliance Industries may have also boosted inflows into the oil and gas space,” said Pankaj Pandey, head of Retail Research at ICICI Direct. “While the refining business has performed well, a significant portion of foreign inflows into Reliance may be due to its thriving telecom business.”

Overseas investors purchased shares worth ₹13,049 crore across eight sectors in the second half of November, as per NSDL data. In the first half of the month, they sold shares worth ₹21,021 crore across 16 sectors. Global investors invested over ₹1,000 crore in the capital goods and consumer durables sectors in the last 15 days of November.

Foreign investors sold shares worth ₹10,722 crore across 15 sectors in the second half of November, with fast-moving consumer goods (FMCG) witnessing the highest outflows at ₹2,722 crore in this period. They withdrew ₹2,042 crore in the first half of the month. Between January and October, foreign investors dumped shares worth ₹26,178 crore in the sector.

“FMCG stocks continue to trade at peak valuations, which is why foreign investors shied away from the sector, but the selling is not heavy either,” said Bhavik Joshi, business head at INVasset PMS.

The automobile sector witnessed some profit booking as these stocks shot up significantly post the GST reforms, he said. Overseas investors divested shares worth over ₹1,000 crore in automobiles and financial services in the second half of November. IT, which saw aggressive foreign selling this year, witnessed a moderation in the pace of outflows as global investors offloaded shares worth ₹921 crore in the latter half of November.