FPIs raise bets on FMCG stocks; prune holdings in energy and IT

In July, they were net-buyers after nine consecutive months of selling

Foreign portfolio investors (FPIs) have made a cautious re-entry into the domestic market. In July, they invested the most on fast-moving consumer goods (FMCGs), while continuing to prune their holdings in the energy and information technology (IT) sector.

According to a note by IIFL Alternative Research, FMCG stocks saw net inflows of $620 million last month, followed by telecommunications ($580 million) and capital goods ($240 million).

Energy (oil and gas) stocks saw outflows of $660 million, followed by IT ($590 million) and metals ($160 million).

FPI allocation towards the FMCG sector reached the highest level since June 2020. The sector