Foreign portfolio investors (FPIs) have allocated over half of their net inflow in Indian equities to the automobile sector this year, with FPI assets under management in the sector rising by nearly 19% to $37 billion year-to-date. The order books of Maruti and Mahindra and Mahindra show promising volume visibility, and the auto sector has become the fifth-largest valued in FPI equity portfolios. FPIs also invested 32% of May's inflow in the capital goods sector, with a total of $3.6 billion invested in Indian equities since the start of 2023.
