In the last 6 months in the Indian stock market, foreign investors have accumulated more than Rs. 38 thousand crores of investments in only 6 sectors, despite the continuous withdrawal of investments.
Foreign investors have invested Rs 10,970 crore from August last year to February 15, 2023 in the top consumer services sector alone. Apart from January, investments continue to flow in other months. Next to this, foreign investments of Rs 9,936 crore have come in the FMCG sector.
The metals and mining sector has received the third-highest investment from foreign investors, despite a sharp hit to earnings in the last two quarters due to higher costs and lower demand. Foreign investors have invested Rs 7,270 crore in metals and mining stocks. In September last year alone, they sold shares in the sector.
Next on this list, comes healthcare stocks. 5,511 crore foreign net investment in 6 months. Foreign investors have also invested in the automobile and auto parts manufacturing sector.
Despite investing 5 months out of the last 6 months, the investment fell due to booking profits in mid-February. The sector, which accounts for a large share of the manufacturing sector, has seen a net investment of Rs 5,139 crore since August.
Will foreign investments continue in 2023?
As far as the Indian stock markets are concerned, the start of this year has not been as good as expected. Due to this, foreign investors have started shifting their investments to other developing countries. They are pulling investments out of India and investing in cheaper markets like China, Hong Kong and South Korea.
Internationally, the stock markets are experiencing ups and downs depending on US inflation and interest rate hikes by the US Federal Reserve. As for India, Adani Group stocks were down on the downside, along with international market conditions. However, on a long-term basis, the Indian stock market is promising. Experts say there is no need to worry as India’s domestic demand and economic growth are bright.
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