New Delhi, Feb 21 (IANS) – According to a report by JM Financial Institutional Securities, Foreign Institutional Investors (FIIs) sold financial stocks worth $30 billion, while the IT sector saw significant buying of $4.5 billion in January 2024.
The report reveals that FIIs heavily sold financials, followed by FMCG, while also investing heavily in the IT sector. It also states that on a year-to-date basis, FIIs are net sellers in financials. However, FII flows turned positive in February led by the Debt segment. The report also highlighted the positive inflows in the cap goods and IT sectors, while FIIs turned negative on financials and metals. It attributed the positive flows in the debt segment to the anticipated inclusion of domestic bonds in the JPM index.
Over the last four months, FII flows amounted to $7.8 billion, a significant improvement from the outflows of $94 million in the previous fiscal year. Meanwhile, mutual fund flows remained strong in mid and small-cap schemes, with large cap schemes garnering the highest inflows of Rs 12.9 billion in January 2024.
Despite expectations for increased preference for large cap schemes, the report noted that flows in the mid and small-cap category continued to remain strong. It also highlighted the trend of monthly Systematic Investment Plan (SIP) flows reaching Rs 188 billion and projected total SIP flows to reach Rs 1.9 trillion during FY24, as opposed to Rs 1.6 trillion in FY23.
In conclusion, the report provides valuable insights into the trends of FII and mutual fund flows, citing significant selling of financial stocks and increased investment in the IT sector. It also offers projections for SIP flows and highlights the strong performance of mid and small-cap schemes in the mutual fund sector.
(Sanjeev Sharma can be reached at Sanjeev.s@ians.in)
