Financials, FMCG lead FPI sell-off; IT stocks buck the trend in first half of October

Mumbai: Foreign portfolio investors (FPIs) continued to sell shares across most sectors, including financial services, FMCG, auto, healthcare and telecom, during the first half of October, even as IT stocks attracted buying. Financial services saw the highest FPI outflows, at ₹8,634 crore, during first half of October, following sales of over ₹6,943 crore in the second half of September.FMCG and automobile stocks also saw heavy selling, with FPIs offloading shares worth ₹8,172 crore and ₹6,533 crore, respectively, in the first half of October.

This compared with sales of ₹972 crore in FMCG and ₹3,542 crore in auto stocks during the second half of September.ET Bureau"Rising US Treasury yields, elevated crude oil prices and currency uncertainty were among the factors weighing on foreign investor sentiment," said Vishad Turakhia, CEO of Equirus Securities. "In India, financials, consumption and autos are facing scrutiny over earnings growth, funding costs and valuations."Healthcare and telecom stocks saw FPI selling of ₹5,497 crore and ₹3,928 crore, respectively, during the first half of October.

Capital goods, metals and oil and gas stocks also witnessed outflows of ₹3,886 crore, ₹3,693 crore and ₹3,689 crore, respectively.Read more: Record galore! Jio IPO claims crown for highest QIB demand among India’s 5 largest issues, edges past NSELive EventsIT stocks, however, bucked the trend. FPIs bought shares worth around ₹2,599 crore in the sector during the first half of October, after selling around ₹1,000 crore in September, amid a sell-off in AI-related stocks elsewhere in Asia on concerns over the durability of their recent rally.

In August, FPIs were buyers of IT stocks of around ₹4,103 crore, while in July they bought around ₹3,358 crore.Read more: Jio leverage play pops up at SBI as India brokers lure IPO bets"Investors found value in Indian IT stocks as valuations moved closer to or below their long-term averages," said Kranthi Bathini, equity strategist at WealthMills Securities. He said some IT companies had reported encouraging results.(You can now subscribe to our ETMarkets WhatsApp channel)