FPIs inject Rs 14,205 crore in November

New Delhi: The Indian financial services space seems to be in a sweet spot as foreign investors have made a net investment of Rs 14,205 crore ($2.1 billion) in the sector in November amid strong credit growth and manageable non-performing loan portfolio.

The investment comes following a net withdrawal of Rs 4,686 crore from financial services stocks in October on account of profit booking.

Overall, foreign portfolio investors (FPIs) have made a net investment of Rs 36,238 crore in the country's equity markets in November. Of this, the financial services sector attracted Rs 14,205 crore, which accounts 39 per cent of total investment made by FPIs in equities, data with National Securities Depository Limited (NSDL) showed.

Most of the buying was concentrated in the first half of the month of November 2022.

Manish Chowdhury, Head of Research at Stoxbox, said the financial services sector is coming out of a lean period and is doing well due to a strong uptick in loan growth and manageable non-performing loan portfolio.

"We believe that an expected acceleration in capex spending should ultimately trickle down to enhanced incomes which would open opportunities on a wide range of financing frontiers including housing, vehicle, SME, etc. The margins of these companies should also benefit from low-cost deposits garnered earlier," he added.