FPIs' holding in NSE-listed cos hit 5-yr high in Dec quarter on robust inflow

In December 2020, the ownership of FPIs in NSE-listed companies stood at a five-year high of 22.74% due to massive net inflow of Rs. 1.42 lakh crore (US$ 19.50 billion) in the third quarter. In comparison, according to primeinfobase.com, an initiative of the Prime Database Group, the holding of international portfolio investors (FPIs) was at 21.51% in the quarter ending September 2020.

On Monday, Mr. Pranav Haldea, Managing Director of Prime Database Group, said, “As of December 2020, ownership of FPIs (in terms of value) achieved an all-time high of Rs. 41.83 lakh crore (US$ 574.39 billion), up 29% from Rs. 32.47 lakh crore (US$ 445.86 billion) in the previous quarter, due to the increase in equity markets. FPIs are the main non-promoter shareholders in the Indian market and play a major role in their investment decisions with regard to stock prices and overall market direction.”

Mr. Haldea further stated that the institutional capital tends to increasingly become more focused on the top 10% of businesses by market cap, suggesting a higher risk-off landscape. By market capitalisation, the top 10% of companies accounted for 51.27% of total FPI holdings as of December 2020, 34.05% of total DII holdings and 35.06% of total MF holdings (up from 34.94% on September 2020).

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.