Financial services bear maximum brunt of late-March FPI sell-off

Why it matters

These investors dumped shares worth ₹28,824 crore in March 16-31 after withdrawing ₹31,831 crore in the first half of the month.

Key takeaways

• In March, Bank Nifty plunged nearly 17%, and benchmark Nifty dropped over 11% amid the global market sell-off sparked by the West Asia conflict.
• Automobiles and construction witnessed foreign outflows worth ₹7,691 crore and ₹6,179 crore, respectively, in the second half of March.
• In February, both sectors had seen inflows worth ₹3,586 crore and ₹4,487 crore, respectively, but had seen outflows in the first half of the month.
• Although sentiment is weak, the valuations are attractive; however, foreign investors have delayed allocation due to geopolitical uncertainty that sparked off a risk-off sentiment across emerging markets," said Srivastava.