Value of FPI stake in Indian cos at record Rs 55 lakh crore

Nov 1, 2021

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MUMBAI: The whole worth of investments by overseas portfolio buyers (FPIs) in India crossed the Rs 50-lakh-crore mark as of September this yr, though their mixed holding in firms listed on the NSE, at 21.5%, was at a five-quarter low at September-end.
The bounce within the worth of FPI holding is principally as a result of current rally within the inventory market and the rise within the variety of firms they’ve invested in, which was at 1,370, additionally an all-time excessive, a report by Prime Infobase mentioned.

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In keeping with Pranav Haldea, MD, Prime Database Group, of which Prime Infobase is an arm, the rise in worth of FPI holding to Rs 54.7 lakh crore confirmed a 12% bounce through the September quarter primarily on account of a buoyant secondary market. Nonetheless, internet influx from FPIs was at simply Rs 3,928 crore through the quarter, leading to a slight decline of their complete holding to 21.5% on the finish of the quarter from 21.7% as of end-June 2021.
In contrast to FPIs, mutual funds (MFs) reversed their possession pattern through the earlier quarter. After 5 quarters of consecutive decline, holding of MFs in firms listed on the NSE elevated to 7.36% as on September 30 from 7.25% as on June 30. The rise in MFs’ share got here on the again of a Rs 38,221-crore internet inflows through the quarter, Haldea mentioned.
In worth phrases too, MFs’ holding went up by 14.8% to an all-time excessive of Rs 18.8 lakh crore as on September 30 from Rs 16.3 lakh crore as on June 30. Insurance coverage firms too adopted the FPIs, the report famous. Throughout the earlier quarter, holding of insurance coverage firms declined to a six-year low of 4.81% from 4.89% as on June 30. In worth phrases although, it went as much as an all-time excessive of Rs 12.3 lakh crore.
The mixture holdings of home institutional buyers (DII), which incorporates MFs, insurance coverage firms, banks, monetary establishments and pension funds additionally recorded a slide to a three-year trough at 13.12% as on September 30 from 13.19% as on June 30, regardless of internet inflows of Rs 31,237 crore through the quarter. In worth phrases, DII holding went as much as an all-time excessive of Rs 33.4 lakh crore, the report famous.



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