FII Investment in IT Sector: At present, foreign institutional investors (FIIs) are investing heavily in emerging economies. Most of the investment is happening in Brazil. India is at number two. At the same time, there is a lot of FII investment in Indonesia. According to the brokerage firm CLSA, Brazil, India, Indonesia, South Africa and Taiwan remain the favorites of FII at this time. Last month (June 2021) in India, foreign investors Has invested $ 2.4 billion. After two consecutive months of withdrawing money, FIIs increased their investment in India last month. IT Stocks has emerged as the most preferred sector of foreign investors. Apart from this, they are in healthcare, discretionary and essential They are also investing in companies in the goods sector, although they continue to withdraw their money from companies in the banks, energy, industrial and utilities sectors.
FIIs are investing money in this sector by withdrawing money from the banking sector
The CLSA report states that FIIs in India are withdrawing money from the banking sector and investing it in shares of IT companies. In May, FII holding in banks stood at 8.83% point. Due to active selling in the banking sector stocks, the overweight of FIIs decreased by 75 basis points and it came down to 7.5%. Whereas in May it was 8.83% point.
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Best performing IT, Healthcare sector
In the month of June, Nifty-50 had climbed 0.9 percent to 15,722 points. The performance of Nifty 50 was better than the stock indices of Britain, Germany, China, Singapore and Hong Kong. As far as the performance of the sectors is concerned, the best growth was seen in the IT and Healthcare sector. The biggest jump in June (June 2021) came in the IT sector at 9.2 percent, while the shares of healthcare sectors registered a rally of 4.3 percent. FMCG, realty and PSU sectors were the top performers. On the other hand, stocks of metals, oil and gas, power and banking sectors were the biggest losers.