Everyone knows that the fleet of the sector on which foreign institutional investors (FIIS) hands, the fleet crosses and the sector who removes his hand from the head of the sector, there is a halt of destruction. In the last 6 months, FII has done the work of drawing its hand from 6 sectors. All these sectors, including a total of Rs 1 lakh crore, have been offloaded. Apart from this, there are some sectors where they have put their hands. As a common investor, you should know where the smart money is doing the game. Today we will give you information about all those sectors from where money has been withdrawn and dumped within the last 6 months.
The most impact is on the IT sector. It alone has sold Rs 33,479 crore. After this, 17,819 crore was seen in FMCG, 16,058 crore in auto, 14,417 crore in consumer services, 12,231 crore in power and Rs 11,296 crore in consumer durables.
In which sectors show investment
This selling seems to be trying to reduce the risk in the entire structure, not just for the profit. Sectors like healthcare and construction have also sold a lot. On the other hand, an investment of Rs 23,065 crore has been seen in the telecom sector, and Rs 9,456 crore in the financial sector.
Domestic investors confident in consumer finance sector
In the case of exporters dependent on exports, they are currently in weight and watch mode, while sectors dependent on domestic demand may proceed. Also, the speed in the market has elevated the valuation of midcap and smallcap stocks.
Chris Wood of Jefferies says that last month, $ 7.2 billion, and in June, the new share of $ 6 billion has come in the market so far. Due to this, pressure on the market has increased. At the same time, the spirit of domestic investors is still strong, especially in the consumer finance sector. But Fiis is now worried about over-regulation and saturation in the market.
IT sector improves far away
There is also a concern on the Arnings front. HSBC stated in its report that the demand for consumer staples (such as everyday uses) was weak and the credit growth of banks has also slowed down. The IT sector may have shown 6 per cent net income growth, but the improvement in this sector is still far away due to weakening demand in the US, decrease in designing expenses and global uncertainty.
Long -term opportunities can be made in IT
Although not all foreign investors have completely back down, they are rotating their investments. Fiis has invested money in telecom, financials, service sectors and chemicals. Chirag Mehta, Chief Investment Officer of Quantum AMC, believes that banks, consumer desires, materials and utility sectors are looking better for a long period. They are currently in alert mode on the IT sector, but if there is a further decline then there can be opportunities for long term in good companies.
Jeffer’s greed and fear portfolio
Greek and Fear Portfolio of Jeffers are also changing. For example, L&T, Thermax and Godrej Properties have been removed and TVS Motor, Home First Finance and Manappuram Finance have been added. Also, investment in Policybazaar and Bharti Airtel is also being increased, it is clear that now focus is on conjugation and credit based companies.
(Disclaimer: This news has been published on the basis of the ideas and analysis of experts. Based on this information, consult your certified Investment Advisor before taking any decision.
