Foreign equity funds pile into Indian financials as credit cycle picks up.
Foreign investors are buying into Indian financial firms, lured by the prospects of a fresh credit cycle that may boost the stocks of the country’s largest lenders.
Indian shares are trading at a record-high valuation premium to their Asian counterparts, BNP Paribas (OTC:BNPQY) said, but overseas investors have found a bright spot in financials, considering them relatively cheap given their strong fundamentals.
The optimism is reflected in inflows, with foreign investors buying a net of $1.74 billion worth of Indian financial stocks in November, data released by the National Securities Depository Ltd this week showed.
