Sumary of Bank, financial stocks get lion’s share from FPIs:
- Banking and financial sector stocks are the biggest gainers of the record foreign portfolio investor (FPI) inflows into Indian equities in fiscal year 2021 (FY21)..
- Driven by ample liquidity in global markets and early signs of economic recovery in India, FPIs pumped in a record investment of ₹2.74-lakh crore into Indian equities in FY21..
- Of the total inflows, banks and other financial services (including FIs, NBFCs, AFCs, HFCs) alone netted ₹77,200 crore or 28 per cent of the total net inflow..
- VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services said, adding, “The prospects for large commercial banks, particularly the leading names in the private sector, housing finance companies and fintech companies look bright..
- In contrast, FPIs were net sellers in the financial services sector in FY20 with a net outflow of ₹7,690 crore, which was preceded by a net inflow of ₹6,194 crore in FY19..
- Improving stress in sector Market experts say that lesser-than-expected stress in the banking sector and faster economic recovery have incentivised foreign investors to bet on the financial services sector, which is the bedrock of economic activity and a direct gainer of economic rebound..
- Sectors attracting FPIs A sector classified as ‘Others’ is the second highest gainer of FPI investment in FY21 with a net inflow of ₹51,267 crore….