FIIs Flock to Metals, Capital Goods Amidst January Selloff

• Foreign institutional investors (FIIs) were net sellers across most sectors in January but showed strong buying interest in metal and capital goods stocks.
• FIIs invested Rs 8,837 crore in metal stocks and Rs 2,435 crore in capital goods in the second half of January, building on earlier purchases.
• The rally in metal stocks was driven by a surge in base metal prices, a weakening US dollar, increased demand for physical assets, and geopolitical tensions.
• Conversely, sectors like financial services, healthcare, consumer services, telecom, and automobiles experienced significant FII selling pressure.
• Other affected sectors included realty, power, consumer durables, FMCG, and construction, all witnessing continued FII outflows.