Banking, oil & gas stocks top FPI picks in first half of July

Overseas investors continued to pour money into banking and financial services stocks even as they turned bullish on oil and gas in the first half of July.

Around Rs 7,050 crore or 23% of the total FPI inflows between July 1 and 15 went into banking and financial services firms, following the Rs 18,704 crore invested in June.

FPIs bought shares worth Rs 30,662 crore in the first half of July. Most banks reported better-than-expected earnings growth in the March quarter with further margin expansion, while asset quality improved.

Most lenders have continued to grow in the June quarter, with improved asset quality and margin expansion. FPIs also bought shares of oil and gas stocks worth Rs 3,891 crore after selling shares worth Rs 16,465 crore between January and June 2023.

The profitability of oil marketing companies HPCL, BPCL and IOC is expected to improve in the June quarter on higher marketing margins. However, the performance of upstream PSUs may be subdued on lower crude oil realisation. FPIs also bought shares worth over Rs 2,000 crore each in FMCG, power, capital goods, telecom and consumer durables.