New Delhi, Aug 7 (IANS) Foreign portfolio investors who turned net buyers in Indian equities in July pumped their money mainly into three sectors with highest allocation to consumer services sector, a report said on Friday.
The report from Vallum Capital said consumer services saw Rs 10,201 crore worth of FPI inflows, healthcare received Rs 7,755 crore and consumer durables attracted Rs 7,342 crore.
Collectively, these sectors attracted Rs 25,298 crore — 125 per cent of total equity inflows — implying that FPIs funded these bets by simultaneously selling cyclicals.
The report showed that capital goods lost Rs 6,275 crore, telecom shed Rs 5,725 crore and automobiles saw Rs 4,564 crore exit, signalling a defensive repositioning rather than a broad India bull call.
Foreign portfolio investors turned net buyers in Indian equities in July 2026, pumping in Rs 20,199 crore — a sharp reversal from June's Rs 49,341 crore selloff.
"Foreign money is backing India's household, not India's capex cycle. FPIs are not betting on India's capex story or infrastructure push—they are buying discretionary consumption and healthcare, sectors where earnings visibility is higher and global macro risks matter less," the report said.
Private final consumption expenditure grew 7.1 per cent in the last quarter of FY26, with India's Retailers Association reporting retail growth of 10 per cent and 9 per cent in March and February respectively.
Private consumption rose 7.7 per cent in FY26, compared to 5.8 per cent the previous year—a structural strengthening of household spending, particularly in discretionary categories like retail, travel, hospitality, and services.
The share of private final consumption in India's GDP rose to 61.5 per cent in FY26, making the consumer sector the economy's centre of gravity.
The report noted that the sectoral rotation mirrors a global trend toward domestic demand over industrial capex.
It mentioned that global healthcare ETFs recorded their largest monthly inflows in five years in November 2025, attracting about $6.8 billion.
—IANS
aar/ag
