Millennium Post

FPI holdings in domestic equities down 6% at $612 bn in Q4: Report

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NEW DELHI: The value of foreign portfolio investors' (FPI) holdings in domestic equities reached $612 billion in the March quarter, down 6 per cent from the preceding quarter, according to a Morningsta­r report.

This was largely on the back of a massive sell-off by foreign investors and correction in the Indian equity markets.

At the end of March quarter, the value of FPI investment­s in Indian equities fell to $612 billion, which was lower than $654 billion recorded in the previous quarter, a fall of around 6 per cent, the report noted.

In March 2021, the value of FPI investment­s in Indian equities was at $552 billion.

Consequent­ly, FPIS' contributi­on to Indian equity market capitalisa­tion also fell during the quarter under review from 18.3 per cent to 17.8 per cent.

Offshore mutual funds form an important component of total foreign portfolio investment, apart from other large FPIS such as offshore insurance companies, hedge funds and sovereign wealth funds.

During the March quarter, FPIS were net sellers in Indian equities to the tune of $14.59 billion as compared to the net inflow of $5.12 billion in the previous quarter.

On a month-on-month basis, foreign investors offloaded old net assets worth $4.46 billion in January, $4.74 billion in February and $5.38 billion in March. Rising crude prices and surging inflation in the US continued to worry foreign investors as it was paving the way for the rate hike by the US Fed.

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