Overseas Funds Buy $1.5 Billion of Indian Bank Stocks After 3-Month Selloff
Updated
Updated · Bloomberg · Jul 7
Overseas Funds Buy $1.5 Billion of Indian Bank Stocks After 3-Month Selloff
3 articles · Updated · Bloomberg · Jul 7
Summary
$1.5 billion of overseas buying flowed into Indian banking and financial-services shares in the two weeks through June 30, flipping the sector back to net inflows after three months of selling.
June ended with net inflows of $357 million, according to NSDL data compiled by Bloomberg, as the Reserve Bank of India's recent steps to attract foreign capital eased lenders' funding constraints.
The rebound in bank stocks adds to a broader revival in foreign appetite for Indian assets, with strategists citing fading oil-price pressure and improving market sentiment.
As of mid-2026, the Indian market has shown signs of recovery, but overall sentiment remains cautious due to persistent macroeconomic concerns. A key factor is the recent volatility in crude oil prices, which dipped below $100 per barrel before rebounding, driven by ongoing geopolitical risks and fears of supply disruptions. These elevated energy prices continue to challenge India's economy, impacting inflation and the rupee. Despite these headwinds, certain sectors like PSU banks and realty have demonstrated resilience, highlighting selective opportunities even as broader market caution persists.