FIIs bought stocks from these 4 sectors ahead of election results

The two biggest sectors that bore most of the FII outflow were (Rs 8,583 crore) and IT (Rs 5,802 crore). Besides, selling was also seen in oil and gas, FMCG, auto, and power stocks.

In the calendar year 2024, the total has been $2.8 billion with the highest inflow seen in consumer services ($2.1 bn), telecom ($1.9 bn), and commercial and professional services ($1.7 bn). The financial services sector saw the largest outflow in CY24 ($6.5 bn), followed by the FMCG sector ($1.5 bn), according to Emkay Global.

Last fortnight saw the largest inflow in the capital goods sector ($813 million) followed by consumer services ($243 mn), telecom ($165 mn), and real estate ($134 mn).

"FIIs regard Indian valuations to be very high and, therefore, capital is getting shifted to cheaper markets. The pessimism regarding Chinese appears to be over and there is a trend of investing in Chinese stocks listed in the Hong Kong Exchange since the valuations of Chinese stocks have turned very attractive," said Dr V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.

Exchange data show that the ownership of FIIs in the NSE 500 continues to be significantly lower at 18% compared to their long-term average of about 21%.

"Many FIIs who were on the sidelines due to the uncertainty around elections should now start increasing their allocation towards India. India’s weight in MSCI emerging markets has also been increasing over the last few years which augurs well for longer-term FII flows. Overall, we would expect a massive step up in towards India," said Nikhil Ranka, CIO- Equity Alternatives, Nuvama Asset Management.

In the derivatives market, FIIs were net short by 192,842 contracts. Typically, extreme short positions by FIIs have resulted in minimum double-digit positive returns for Nifty over a one-year period.

(Data: Ritesh Presswala)