Foreign Portfolio Investors (FPIs) stacked up shares in the power and capital goods sectors in April 2026, while reduced their exposure heavily from financial services and oil, gas & consumable fuels.
According to National Securities Depository (NSDL), FPIs bought Rs 5,557 crore worth of power sector stocks, and Rs 4,339 crore worth of capital goods stocks. Further, metals & mining sector saw FPI inflows of Rs 1,218 crore, and construction sector saw Rs 926 crore inflows.
What Drove Strong FPI Buying In Power Stocks
The rally in power stocks in April 2026 was driven by expectations of a rise in electricity demand as the country entered the peak summer season. Rising temperatures and heatwave conditions pushed peak power demand higher, as households increased the use of air conditioners and cooling appliances. Further, investors raised their bets on higher use of induction cooktops during the LPG-related disruption linked to the US-Iran war, which also boosted electricity demand.
Investor sentiment was further supported by strong evening demand trends. According to a JM Financial report released last month, evening power demand reached 224.6 GW at 7:00 PM on March 10, marking a 7 per cent year-on-year increase and the highest level ever recorded for March.
Coal-based plants were running at nearly full capacity to meet this demand, highlighting the continued need for reliable power supply.
