Foreign investors made a net investment of $2.1 billion in the Indian financial services sector in November . The financial services market attracted Rs 14,205 crore, accounting for 39% of all FPI investment in equities .
New Delhi: The Indian financial services sector seems to be in a sweet spot as foreign investors made a net investment of Rs 14,205 crore ($2.1 billion) in the sector in November, following a net withdrawal of Rs 4,686 crore from financial services stocks in October on account of profit booking.According to data from National Securities Depository Limited (NSDL), the financial services market attracted Rs 14,205 crore, accounting for 39% of all FPI investment in equities, he said.Major improvement is expected in the first half of the year 2022, according to Rajiv Bajaj, Chairman and MD of Bajaj Capital, as credit growth accelerates slowly and the growth of the bank seems to be encouraging.The BFSI sector is likely to be a major beneficiary of it.After a long time, they're now entering a pay escalation cycle.
Fast-moving consumer products (FMCG) emerged as the second most preferred sector with a net investment of Rs 3,956 crore at the end of November.This increase was largely due to steady consumption, according to Hitesh Jain, Lead Analyst-Institutional Equities at YES Securities.In contrast, consumer durables saw the most sales by FPIs in November at Rs 1,275 crore.In addition, electricity and telecommunications saw sales of Rs 1,100 crore and Rs 1,084 crore respectively, according to Bajaj.As far as annual FPI flows in the equity markets, it will be dependent on the US Federal Reserves policy meeting, which is scheduled on December 13-14. Indias outperformance is expected to continue forward as the United States, Europe, and China face their own challenges such as high inflation, a potential for a slowdown in economic growth, energy and supply chain imbalances.