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

MUMBAI: The total value of investments by foreign portfolio investors (FPIs) in India crossed the Rs 50-lakh-crore mark as of September this year, although their combined holding in companies listed on the NSE, at 21.5%, was at a five-quarter low at September-end. The jump in the value of FPI holding is mainly due to the recent rally in the stock market and the increase in the number of companies they have invested in, which was at 1,370, also an all-time high, a report by Prime Infobase said. According to Pranav Haldea, MD, Prime Database Group, of which Prime Infobase is an arm, the increase in value of FPI holding to Rs 54.7 lakh crore showed a 12% jump during the September quarter primarily due to a buoyant secondary market. However, net inflow from FPIs was at just Rs 3,928 crore during the quarter, resulting in a slight decline in their total holding to 21.5% at the end of the quarter from 21.7% as of end-June 2021. Unlike FPIs, mutual funds (MFs) reversed their ownership trend during the previous quarter. After five quarters of consecutive decline, holding of MFs in companies listed on the NSE increased to 7.36% as on September 30 from 7.25% as on June 30. The increase in MFs’ share came on the back of a Rs 38,221-crore net inflows during the quarter, Haldea said. In value terms too, MFs’ holding went up by 14.8% to an all-time high of Rs 18.8 lakh crore as on September 30 from Rs 16.3 lakh crore as on June 30. Insurance companies too followed the FPIs, the report noted. During the previous quarter, holding of insurance companies declined to a six-year low of 4.81% from 4.89% as on June 30. In value terms though, it went up to an all-time high of Rs 12.3 lakh crore. The aggregate holdings of domestic institutional investors (DII), which includes MFs, insurance companies, banks, financial institutions and pension funds also recorded a slide to a three-year trough at 13.12% as on September 30 from 13.19% as on June 30, despite net inflows of Rs 31,237 crore during the quarter. In value terms, DII holding went up to an all-time high of Rs 33.4 lakh crore, the report noted.

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