Banking Shares Get Highest Monthly Foreign Inflows In November

The banking sector mopped up the highest inflows from foreign investors who remained net buyers for the third straight month in November.

Foreign portfolio investors infused nearly $2.3 billion into shares of the banking firms, according to data available on National Securities Depository Ltd.’s website. That’s the biggest inflow since 2012 when NSDL started recording the sector-wise data. It represents about 65 percent of the $3.5 billion they ploughed into Indian stocks last month.

The NSE Nifty Bank Index advanced 6.25 percent in November, registering its best monthly returns in eight months. The returns in the 12-stock gauge were led by the rally in RBL Bank Ltd., IndusInd Bank Ltd., ICICI Bank Ltd. and State Bank of India.

Foreign investors poured highest funds in eight months into Indian markets in November. They also remained net buyers for the third straight month since the government rolled back the higher tax surcharge on them—a move that had led to a selloff in July and August.

Banking sector was followed by miscellaneous shares—the stocks which do not fall in any specific sector.

What Foreign Investors Sold In November

Software and services sector witnessed the highest outflow in November. The overseas investors remained net sellers in the sector for the eighth consecutive month, offloading stocks worth $286 million last month. That comes as the 10-stock NSE Nifty IT Index declined 3.6 percent during the period, registering the steepest fall in six months.

Food, beverages and tobacco witnessed the second-highest outflows in November, followed by pharmaceuticals and biotechnology, and textiles, apparels and accessories sector.

Some Key FPI Share Transactions

Full details of investments in individual stocks by overseas investors in October were not available. Bulk-deal data from the stock exchanges, however, revealed the stocks where foreign investors participated.

Nov. 1

• Yes Bank: BNP Paribas Arbitrage sold 1.3 crore shares or 0.51 percent equity at Rs 69.15 each.

Nov. 18

• Mcleod Russel: Edgbaston Asian Equity Trust sold 48 lakh shares or 4.6 percent equity at Rs 7.23 apiece.
• Eris Lifesciences: Nomura Singapore acquired 9.5 lakh shares 0.69 percent equity at Rs 410 each.