It is not just domestic IT giants and other heavyweight blue-chips that are attracting overseas investors on Dalal Street, banking stocks are also finding favour with them and have gone further up on their radar over the past one year.
Foreign institutional investors as well as domestic mutual funds have increased their stake in most of the public and private sector banks over the past one year, an analysis of their shareholding pattern shows.
According to the latest available data with the stock exchanges, FIIs have increased their stake in 15 banking stocks, while their stake has gone only marginally down in the remaining three banks out of the total 18 banks listed on the Bombay Stock Exchange's Bankex index.
Taking cues from the FIIs, domestic mutual funds have also raised their holding in 11 banks, while their stake has gone down in just seven banks during the same period.
Banks like ICICI Bank, Kotak Mahindra Bank, UTI Bank, Bank of Baroda, Andhra Bank, Bank of India, Indian Overseas Bank and Karnataka Bank have seen both FIIs and MFs raising their stake over the past one year.
Contrary to popular perception that IT companies are favourites of FIIs, the banking sector has also emerged as a lucrative investment destination for overseas investors boosted by ever expanding corporate and consumer financing avenues available to the banks.