FPIs invest over Rs 11,000 cr in IT stocks: NSDL
The reason for buying IT shares is the possibility of the rate cut by the US Fed in Sept; If it happens, companies’ IT spending will further increase
FPIs invest over Rs 11,000 cr in IT stocks: NSDL
New Delhi: Foreign Portfolio Investors (FPIs) invested Rs11,763 crore ($1.40 billion) in July, according to NSDL data.It is the highest investment since April 2022 when a new sectoral classification was implemented in the market by NSDL.
After this exercise, the number of sectors on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) was reduced from 35 to 22. Earlier, IT was divided into three sectors: Software, services and hardware.
The reason for buying IT shares by FPIs is the possibility of the rate cut by the US Fed in September.If it happens companies’ IT spending will further increase.It’s beneficial for the entire IT Sector. In the last one month, Tata Consultancy Services (TCS) surged 5 per cent, Infosys rallied 5.5 per cent and HCL Tech was up by 3.5 per cent.
During this period, BSE benchmark Sensex and NSE benchmark Nifty have given negative returns of about one per cent and half per cent respectively.The Nifty IT index gained 13 per cent in July.
