Foreign portfolio investors (FPIs) pumped in about ₹14,610 crore (~US$1.66 billion) into Indian equities in October.
Of that amount, financial-sector stocks claimed ~₹13,279 crore — about 91% of the total inflows.
The shift reflects overseas investors’ confidence in India’s banking/finance earnings trajectory.
Large private banks, NBFCs, and non-bank lenders are central to this rotation.
Domestic investors may watch for valuation stretch in financials following the surge.
However, the flow concentration raises risk of reversal if sentiment weakens.
For traders, using proper stop loss in high-flow, high-beta finance stocks is
prudent.
Broader stocks outside financials may lag unless flows diversify.
The phenomenon underscores how foreign buying drives leadership in the Indian market.
Investors should monitor monthly FII/DII data and sectoral inflows as leading indicat
ors.