The FII' s 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, sebi data shows.
As a result, banking sector has been one of the top performers this month, during a month in which the Nifty broke a few records, including most recently in today’s session.
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 would win elections due next month given its perception as being more business-friendly .This optimism can vaporize when some elements wake up to find out that they have a fractured mandate and nothing decisive has come out. Then this hot money will make an exit faster than it made the entrance.
Optimism about the domestic economy has also played a role, given easing inflation and a sharply narrower current account deficit.
As a result, banking sector has been one of the top performers this month, during a month in which the Nifty broke a few records, including most recently in today’s session.
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 would win elections due next month given its perception as being more business-friendly .This optimism can vaporize when some elements wake up to find out that they have a fractured mandate and nothing decisive has come out. Then this hot money will make an exit faster than it made the entrance.
Optimism about the domestic economy has also played a role, given easing inflation and a sharply narrower current account deficit.