The selling by foreign investors in the Indian stock market is not showing any signs of stopping. Even in the month of December, foreign institutional investors i.e. FIIs were seen continuously selling shares. If we look at the figures so far, FIIs have sold shares worth about Rs 22,864 crore in December, due to which there is pressure on the market movement.
Foreign investors remained aggressive sellers in the first two weeks of December. During this period, many big and important sectors came under the grip of selling by FIIs. Foreign investors bought shares in large quantities in sectors ranging from financial services to IT, healthcare, power and FMCG.
Financial sector hit the hardest
The maximum pressure was seen in the financial services sector. In the first half of December, FIIs withdrew more than Rs 6,500 crore from this sector. Earlier in November also, big selling was seen in this sector, but in December the pace increased further. Its clear impact was visible on banking and financial shares.
IT and services sector also on target
IT and services sectors also seemed to be falling out of favor with foreign investors. In the first fortnight of December, there was selling of about Rs 3,300 crore from these two sectors. There was definitely less pressure in the IT sector as compared to November, but investor confidence still appeared weak.
Withdrawal in healthcare, power and FMCG also
FIIs also sold shares on a large scale in the healthcare and power sectors. About Rs 2,350 crore was withdrawn from healthcare and more than Rs 2,100 crore was withdrawn from the power sector. There was continuous pressure in the FMCG sector, although the pace of sales in December was somewhat slower as compared to November.
Changed stance in capital goods
Interestingly, in the capital goods sector where FIIs were buyers in November, they became sellers in December. Withdrawal of about Rs 1,200 crore was seen from this sector. Overall, the continuous selling by FIIs in December has made it clear that foreign investors remain cautious about the Indian market at the moment.
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