Stock market
The year 2025 also does not seem to prove to be good for the stock market. The decline of the Indian stock market has been going on in February for the last few months. In the last 2 months, foreign investors have sold more than 80 thousand crores from the Indian stock market. The direct impact of this selling is falling on the Indian stock market, the portfolio of investors is turning red.
According to the latest NSDL data, the FPI sold shares worth Rs 22,789 crore between August 16 to 31. Earlier, in the first fortnight of August, he also sold shares worth Rs 13,471 crore. In this way, in August, foreign investors withdrew a total of Rs 36,260 crore. On the other hand, if you include July, then in the last two months, a total of more than Rs 80,000 crore has been sold by the FPI.
The largest withdrawal from banking and IT sector
The largest impact of selling, banking, financial services and insurance (BFSI) sector has been affected. According to market analysts, the cut in interest rates has brought pressure in margin, which has weakened the trust of investors. Bhavik Joshi, the business head of Invasst PMS, says, “The loan book in BFSI is strong, so there is a possibility of improving in long periods, but currently the perception of investors remains negative.”
The IT sector has also been a victim of heavy selling of FPI. In the second part of August, there was withdrawal of Rs 4,905 crore from the region, while more than Rs 6,000 crore shares were sold in the first part. Sudeep Shah, a technical research head of SBI Securities, said, “IT shares showed a mild recovery from the support level, but there was no follow-by-bite that strengthened.”
Oil and gas, power, consumer services sector also declines
Selling was not limited to BFSI and IT only. FPI also fiercely withdrawn in oil and gas, power and consumer services sector. In the second part of August, oil and gas sector sold Rs 2,017 crore, while in the first part the figure was crossing Rs 4,000 crore. Analysts believe that foreign investors have become alert due to the possible punitive tariff imposed by the US on purchasing crude oil from Russia.
Reliance Industries is being held responsible for this decline, which holds heavy weight in the oil and gas index. Reliance’s share is trading below 200 days of experienced Exetionary Moving Average (DEMA) support zone 13601380. According to Sudeep Shah, “Unless there is no concrete recovery in Reliance, there is a possibility of pressure in this sector.”
Short shopping in auto, chemicals, healthcare
However, there were some sectors where the FPI made selected purchases amidst broad selling. The automobile sector saw the highest foreign investment of Rs 2,617 crore. Earlier in July, there was a withdrawal of Rs 3,584 crore from this sector. Between January and July, foreign investors sold shares worth Rs 14,622 crore from the auto sector, but now the stance here seems to be a little positive.
Bhavik Joshi says, “Reform like GST 2.0 shows the government’s priority to increase consumption, which may increase investors’ interest in auto and FMCG sector.” Apart from this, there was also limited but positive investment in areas like service sector, chemicals, construction materials, capital goods and healthcare.