FPI ownership falls even as investors buy Indian stocks again
In short
Foreign portfolio investors changed their holdings in Indian largecap stocks in the September quarter. Mint’s analysis of 100 largecap companies found they cut stakes in 57% of them and raised stakes in 42%.
This matters because foreign ownership in Indian stocks is still falling, especially among big companies. The reporting does not say which stocks were sold or why the trend continues.
What the reporting says
Foreign portfolio investors reduced their stakes in 57% of 100 largecap companies sequentially in the September quarter, even though they increased holdings in 42%, according to Mint’s analysis. The decline in foreign ownership was more pronounced among largecaps. The reporting does not identify the companies involved or explain why the ownership share is still falling.
Why it matters
Mint’s analysis of 100 largecap companies found foreign portfolio investors cut stakes in 57% sequentially in the September quarter while increasing holdings in 42%. The report says the decline in foreign ownership was more pronounced among largecaps. The immediate market implication is a weaker foreign ownership trend, but the companies and the drivers of the decline are not stated.