Business News | Foreign Investors Cut Holding in Energy, Consumer Staples Sectors but Increases in Transportation, Telecom, Healthcare: Report
Get latest articles and stories on Business at LatestLY. Foreign investors continued to pare their holdings in select defensive sectors such as energy and consumer staples, while increasing exposure to cyclical and growth-oriented segments like transportation, telecom, and healthcare, according to a report by Elara Securities.
New Delhi [India], November 3 (ANI): Foreign investors continued to pare their holdings in select defensive sectors such as energy and consumer staples, while increasing exposure to cyclical and growth-oriented segments like transportation, telecom, and healthcare, according to a report by Elara Securities.
The report stated "FII ownership continues to moderate for most sectors, reflecting a cautious stance". It also added that this reflects a cautious stance amid global volatility and profit-booking after sustained inflows in previous quarters.
Sectors such as Energy (-9.3 per cent YoY), Utilities (-10.1 per cent), and Consumer Staples (-7.3 per cent) saw a decline in foreign interest, indicating a rotation away from defensives and high-valuation plays.
However, FIIs slightly increased their exposure year-on-year in Industrials (+3.9 per cent), Health Care (+12.9 per cent), Information Technology (+7.9 per cent), Materials (+7.6 per cent), Media (+17.1 per cent), Telecom (+14.4 per cent) and Transportation (+16.2 per cent).
The data signals a strategic shift towards sectors with improving earnings outlook and growth potential.
In contrast, domestic institutional investors (DIIs) maintained their counter-cyclical buying trend, increasing exposure across multiple sectors.
Notably, Consumer Discretionary (+26.4 per cent YoY), Telecom (+5.5 per cent), and Financials (+12.4 per cent) witnessed robust domestic accumulation, underscoring local investor confidence in India's consumption and credit growth story.
However, slight softness persisted in Media (-16.6 per cent) and Utilities (-11 per cent), aligning with weak earnings visibility.
The report also shared that the public shareholding trends also reflected mixed retail participation. Retail interest surged in Media (+19.6 per cent YoY) and Real Estate (+19.7 per cent YoY), supported by broader midcap optimism.
On the other hand, participation moderated across Telecom (-18.9 per cent), Auto (-7.8 per cent), and Materials (-10.7 per cent), indicating selective retail rotation.
Overall, the report noted that the combined ownership trends highlight a stable promoter base, rising domestic institutional dominance, and rotational retail behaviour, resulting in a more diversified and balanced market ownership structure across sectors. (ANI)
(The above story is verified and authored by ANI staff, ANI is South Asia's leading multimedia news agency with over 100 bureaus in India, South Asia and across the globe. ANI brings the latest news on Politics and Current Affairs in India & around the World, Sports, Health, Fitness, Entertainment, & News. The views appearing in the above post do not reflect the opinions of LatestLY)