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Financials drag recovery in Large Caps

ICICIdirect Research 22 Aug 2025 DISCLAIMER

During the 1st fortnight of August, FPI flows remained negative as they sold nearly 21k crores from the secondary markets with most of the heavyweight sectors seeing outflows thereby limiting recovery in Nifty.
Aggressive selling pressure was seen in Financial Services (13.5k Cr), Technology (6k Cr) and Oil&Gas (4k). Despite this sell-off, sectors like construction material (likely Cement) and Capital Goods sector have seen noteworthy inflows. Moreover, Chemical and Telecom sector (Bharti block deal worth ~7k cr) continue to witness buying traction.
Intense selling figure in BFSI space also include PAYTM block deal (~3800 Cr) and Kotak Bank block Deal (~2k Cr). Despite this FPIs have been largely negative in financial space in past month along with heavy short positions in the Derivatives segment. We believe a change of bias can be expected from September onwards which may revive the sentiments in the coming sessions.

 

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