InvestorQ : Is it correct that the Sovereign Fund of Norway has been selling in India and how important is that?
Arya Nanda made post

Is it correct that the Sovereign Fund of Norway has been selling in India and how important is that?

Answer
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Deepa Salunkhe answered.
5 months ago


While there are no confirmed reports on who the sellers are, one expectation is that the Norwegian Sovereign Fund has been under pressure to unwind its global portfolio. Norway is an oil rich economy and it derives a large chunk of its annual revenues from oil. With oil price at just about $22/bbl in the Brent Crude market, Norway is facing a serious shortfall in revenues. To make up this revenue shortfall, Norway has apparently been selling from its Sovereign Wealth Fund. Let me add that that the Norwegian Pension Fund selling is extremely significant for two reasons. Firstly, it is the largest sovereign investor in the world with assets under management (AUM) of $1 trillion. Secondly, it has an exposure of $12 billion to the Indian equities and an additional $3 billion in other assets like debt and real estate. So any selling by the Norwegian Pension Fund could be very significant for the Indian markets.