Overview

• Foreign portfolio investors (FPIs) injected Rs 18,446 crore into Indian equities between May 1 and May 15, continuing the reversal of outflows seen earlier this year.
• The financial sector attracted the highest inflows at Rs 4,728 crore, followed by capital goods (Rs 2,233 crore) and oil & gas (Rs 2,130 crore).
• Defensive sectors like FMCG and realty saw significant outflows of Rs 1,057 crore and Rs 842 crore, respectively, alongside smaller outflows in power, consumer durables, and healthcare.
• Benchmark indices Nifty and Sensex have risen nearly 2% in May, marking a second consecutive month of gains amid strong FPI activity.
• Experts attribute the inflows to robust domestic growth forecasts, improving credit growth in financials, and a shift from defensive to growth-oriented sectors.