Foreign portfolio investors poured 146.34 billion Indian rupees into banking stocks over the latest fortnight, marking the largest two-week inflow into the sector in 14 months.
The surge signals a renewed appetite for Indian financial equities among overseas capital, driven by supportive policy measures and improving sentiment in the region's financial markets.
The buying pressure in bank stocks coincides with a broader acceleration of foreign investment into Indian assets.
In June, overseas investors directed a record $3 billion (₹25,800 crore) into Indian government bonds, the highest monthly inflow on record.
This dual momentum in both debt and equity markets suggests a structural shift in foreign investor confidence, moving beyond safe-haven sovereign debt into riskier equity segments.
The return of capital to Indian banks reflects growing confidence in the sector's valuation and the effectiveness of recent policy interventions.