Foreign investors returned to the financial sector in the second half of June. After withdrawing Rs 11,263 crore in the first half of the month, he bought shares worth Rs 14,634 crore. This purchase was due to investments related to global equity index rebalancing and value buying. This is their biggest two-week purchase of 2026 in the financial sector and this has happened for the first time since the second half of February. According to NSDL data, foreign investors became net buyers of Indian equities worth more than Rs 14,000 crore during June 16-30 due to renewed interest in the financial sector. Earlier, there was a net sale of Rs 63,450 crore in the first part of the month.

FIIs became net buyers in banks and the financial sector after three consecutive months of record withdrawals, IIFL Capital Services Senior Vice-President Sriram Velayudhan said in a note. Some part of this investment has come due to FTSE June 2026 Review and the rest due to some active buying. Financial stocks witnessed the largest outflow last year as they were most affected by the 'risk-off' attitude of foreign institutions towards India due to their large presence in the Indian stock market. With signs of an end to the Middle East conflict in mid-June, selling by foreign investors in Indian equities has eased and investment is coming into select sectors like banks and financial sector.

second half of june

Aided by FTSE-linked exposure and attractive valuations, foreign investors became net buyers in the sector after 3 months of record outflows. Vikas Gupta, CEO of Omniscience Capital, said in an ET report that the financial services sector accounts for about 40% of the index, and naturally, it will attract huge investment as it is a large and liquid sector with growth potential, and is also undervalued. The financial services sector is likely to remain the choice of long-term investors including FPIs.

Apart from the financial sector, FPIs also remained net buyers in sectors like construction, consumer services, services, consumer durables, realty and healthcare, where purchases ranged between Rs 1,400 crore and Rs 3,400 crore. On the other hand, they sold shares worth Rs 1,300 crore to Rs 4,300 crore in automobile and auto parts, capital goods, oil, gas and used fuels, power, and metals and mining sectors. They also continued to withdraw money from IT stocks, but the pace of selling slowed down in the second half of June.