Foreign investors pulled ₹30,856 cr in April as financials suffered
Foreign investors kept pulling money out of Indian stocks in late April, with the financial sector hit hardest; ₹30,856 crore left in April.
The pace of selling slowed compared to March's record-breaking exit, but it still marked four straight fortnights of withdrawals.
Power and capital goods see inflows
Financials saw the biggest outflows because they make up a large chunk of market indices and are sensitive to inflation worries.
As Sonam Srivastava, founder and CEO, Wright Research, put it, "The unabated sell-off in banking stocks is due to the sector's high weightage in benchmark Nifty and concerns of higher inflation that could increase current account deficit."
Meanwhile, FIIs actually invested in other areas: power and capital goods each got over ₹4,500 crore.
Saurabh Patwa from Quest Investment Managers explained that global demand for power is rising thanks to AI growth needing more energy infrastructure. Plus, investors are leaning toward physical assets like capital goods since they tend to hold up better when things get uncertain.