Historically, the shift in bets from private to public sector banks has been a valuation play. But over the last few years, public sector banks have seen a structural change in their financial health, with a significant improvement in asset quality, strong credit growth, robust balance sheets, and all-time high profits.
Capital goods have seen an FII inflow of $4.8 billion till August, overtaking the financial services sector at $4.06 billion. FII weightage in capital goods has increased from 4.4% at the start of January to 6.2% at the end of August, according to data from Emkay Global.