FPIS’ HOLDING IN NSE-LISTED COS HIT 5-YR HIGH IN DECEMBER QTR

NEW DELHI: FPIs’ ownership in NSE-listed companies reached a five-year high of 22.74% in December 2020 on the back of huge net inflow of ₹1.42 lakh crore by such investors in the third quarter.

In comparison, the holding of foreign portfolio investors (FPIs) was at 21.51% in the quarter ending September 2020, according to primeinfobase.com, an initiative of Prime Database Group.

In terms of value, FPIs ownership reached an all-time high of ₹41.83 lakh crore as of December, 2020, up 29% from ₹32.47 lakh crore in the preceding quarter, on account of rally in equity markets.

FPIs are the largest non-promoter shareholders in the Indian market and their investment decisions have a huge bearing on the stock prices and overall direction of market, Pranav Haldea, managing director of Prime Database Group, said on Monday.

On the other hand, holding of Domestic Institutional Investors (DIIs)—which includes domestic mutual funds, insurance companies, banks, financial institutions, pension funds among others—declined to 13.55% as of December 2020 from 13.94% as of September 2020.

Mutual funds (MF) witnessed their holding declining to 7.42% from 7.65% while that of insurance companies slipped to 5% from 5.17% in the same period.

The holding of LIC (across 290 companies where its holding is more than 1%) fell to an alltime low of 3.70% as on December 2020, down from 3.91% as on September quarter.