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Shifting Sectoral Preferences in CY24
While overall FII flows were flat for the year, there was notable turbulence in sectoral allocations. Legacy sectors, including blue-chip names, experienced continued outflows as FIIs redirected funds toward emerging new names.
The Banking, Financial Services, and Insurance (BFSI) sector, which accounts for 32.5% of the NSE 100, and the Oil & Gas sector, with a 10% weight, saw combined outflows of nearly ₹1 lakh crore. Instead, sectors like Capital Goods, Healthcare, and Telecom attracted cumulative net inflows of approximately ₹75,000 crore from FIIs by November 2024.
This realignment highlights a pattern shift in investor preferences, with money flowing away from traditional heavyweights to sectors poised for future growth such as small cap and midcap.
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