FPIs pump Rs 13,010 crore into Indian equities in second half of August

Mumbai: Overseas investors extended their buying streak in Indian equities for a fifth consecutive fortnight in the second half of August, with consumer services, financials and healthcare emerging as the biggest beneficiaries of foreign inflows. Foreign portfolio investors (FPIs) pumped ₹13,010 crore into Indian equities during August 16-31, after investing ₹16,609 crore in the first half of the month, according to NSDL data.

“A major part of the foreign portfolio investors’ participation has come from secondary market block deals and offer for sale,” said Sriram Velayudhan, senior vice-president, IIFL Capital Services. “Their focus has been on growth-oriented sectors like consumer services, new-age financial services and healthcare.”

Consumer services attracted the highest inflows during the fortnight at ₹5,019 crore, extending a sectoral buying trend that has gathered momentum in recent months. Financial services saw inflows of ₹3,959 crore, while healthcare attracted ₹3,021 crore.

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“Within consumer services businesses, there has been an inclination towards platform businesses like Nykaa, Eternal, Lenskart and Meesho, where profitability visibility has improved significantly, or hotel businesses like Indian Hotels, which is heading towards seasonally stronger quarters,” said Sunny Agrawal, head of fundamental equity research at SBI Securities.

Capital goods returned to favour in the second half of August after witnessing outflows in July and in the first half of August, while healthcare attracted more than ₹5,900 crore of FPI inflows during August. “The financial services industry is likely to report robust earnings growth for the residual FY27 and hence institutional interest is likely to be favourable, underpinned by comfortable valuations,” Agrawal said. “The healthcare sector also has structural tailwinds across sub-sectors like hospitals, diagnostics and CDMO, which would have led to FII buying momentum in the sector.”
Oil, gas and consumable fuels witnessed the highest outflows at ₹2,251 crore during the second half of August.