Can chemicals stocks defy US tariff heat?

The chemicals and petrochemicals sector has been the biggest draw for foreign money in Indian equities in the last 11 months.

- Dipti Sharma

The chemicals and petrochemicals sector has been the biggest draw for foreign money in Indian equities in the last 11 months. It is the only industry to clock uninterrupted foreign portfolio investment (FPI) inflows, even as other sectors saw choppy trends.

In July, overseas investors pumped in $130 million into Indian chemical and petrochemical stocks, following a hefty $278 million in June, NSDL data showed. A year ago, FPIs had pulled out net equity investment worth $61 million from the sector.

The telecom equipment space topped the charts for FPI inflows in July, attracting $570 million in net equity investment, followed by metals and mining with $388 million, and food, beverages and tobacco at $175 million.

While the chemicals and petrochemicals sector saw 11 consecutive months of FPI buying, the telecom equipment industry witnessed a steady inflow of foreign money since December. Metals and mining, along with food, beverages, and tobacco, attracted foreign inflows only in July.

According to NSDL, FPIs were net sellers in the Indian equity markets in July, with a total outflow of ₹17,741 crore.