Foreign Investors Flock To Financial Services, Fuelling $3.2-Billion Inflow In September

This marked the largest inflow since December 2023, when FPIs funnelled $7.9 billion, as per data compiled by NDTV Profit.

The financial sector’s strong performance was reflected in the NSE Nifty Financial Services Index, which rose by 3.6% in September. This outpaced the broader NSE Nifty 50, which gained 2.3% over the same period.

Although company-specific FPI flows were not available in NSDL data, several financial services stocks witnessed FPI activity in September:

• Sept. 2: HDFC Bank: Copthall Mauritius Investment Limited sold 10.2 lakh shares (0.01%) at Rs 1,636.9 apiece.

• Sept. 3: RBL Bank: Citigroup Global Markets Mauritius Pvt Ltd bought 9.28 lakh shares (0.15%), while Morgan Stanley Asia (Singapore) Pte. - Odi sold 9.28 lakh shares (0.15%) at Rs 227.79 apiece.

• Sept. 5: Max Financial Services: Max Ventures Investment Holdings Private Limited sold 1.1 crore shares (3.18%) at Rs 1,107.37 apiece.

• Sept. 13: PNB Housing: Asia Opportunities V (Mauritius) Limited sold 16.22 lakh shares (0.62%) at Rs 1,097.3 apiece; Goldman Sachs (Singapore) Pte. - Odi bought 0.92 lakh shares (0.04%) at Rs 1,097.3 apiece; the Government of Singapore bought 13.16 lakh shares (0.5%) at Rs 1,097.3 apiece; and the Monetary Authority of Singapore bought 2.13 lakh shares (0.08%) at Rs 1,097.3 apiece.

• Sept. 16: India Shelter Finance Corporation: US-based Nexus Venture Partners' units sold a 5.95% stake for Rs 482 crore.

• Sept. 20: Five-Star Business Finance: The Vanguard Group acquired 37.8 lakh shares (1.28%) for Rs 304.7 crore, while UBS Principal Capital Asia sold 15.8 lakh shares (0.54%) at Rs 804.74 apiece.

• Sept. 25: Five-Star Business Finance: Goldman Sachs bought 5.52 lakh shares (0.18%), and Duro India Opportunities Fund Pte sold 5.52 lakh shares (0.18%) at Rs 824 apiece.

• Sept. 26: Five-Star Business Finance: Four foreign shareholders, including TPG Asia, Norwest Venture Partners, Peak XV Partners, and Sequoia Capital, sold a 14.56% stake for Rs 3,475.33 crore. Nomura, through its affiliates, bought 93.92 lakh shares (3.2%), and Eastspring Investments India Equity Open acquired 24.87 lakh shares (0.85%).

The healthcare sector attracted the second-highest foreign fund inflows at $791 million, followed by the realty sector ($641 million) and fast-moving consumer goods ($584 million), according to NSDL data.

Conversely, the consumer services sector recorded the highest FPI outflows, with foreign investors withdrawing $351 million. The automobile and auto components sector saw the second-highest outflows at $251 million, followed by the information technology sector at $145 million and the construction materials sector at $108 million, NSDL data showed.