Foreign investors buy bank stocks in record setting rally

Foreign institutional investors bought a net $495 million in Indian banks, while selling a net $791 million in pharmaceutical and biotechnology shares this month as of March 15, regulatory data shows.

As a result, lenders have been one of the top performers this month, during a month in which the Nifty has hit a slew of record highs, including most recently on Monday.

The NSE's bank sub index up about 15 percent so far this month, outperforming the nearly 5 percent gain in the Nifty.

Analysts have attributed the strong interest in domestic oriented stocks such as banks on expectations the opposition Bharatiya Janata Party would win elections due next month given its perception as being more business-friendly.

Optimism about the domestic economy has also played a role, given easing inflation and a sharply narrower current account deficit.

EDITORIAL OF THE DAY

  • Sebi’s guidelines for commodity bourses will help farmers get fair price

    As the timeline for the proposed merger of the Forward Market Commission (FMC) with the Securities and Exchange Board of India (Sebi) comes closer, th

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

Sarthak Raychaudhuri

vice-president, HR, Asia South Whirlpool of India

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

TODAY'S COLUMNS

M S Swaminathan

State must intervene to end farm distress

The persistence of farmers’ suicides inspite of the several programmes ...

Zehra Naqvi

Why lie, not like, drives Facebook

So much has been written about how social media and ...

Gautam Gupta

It's a 'blog eat blog' world out there

Let me tell you, fashion journalism has truly taken the ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture