InvestorQ : Is it true that FII holdings in Indian companies have fallen to a new low? What does that indicate?
sarah Leo made post

Is it true that FII holdings in Indian companies have fallen to a new low? What does that indicate?

Answer
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vidhya Laxmi answered.
4 months ago


This is not an all-time low but it is surely a 5-year low. In a surprising development, the holdings of foreign portfolio investors (FPIs) in listed Nifty-500 stocks dipped to a 5-year low on the back of risk-off selling across emerging markets. There has been a flight of capital from EMs like India to more developed markets with a stable currency. On a QOQ basis, the FPI holdings were down by 140 bps while on a YOY basis the FPI holdings in the Nifty-500 companies fell by 80 bps. At the end of the Mar-20 quarter, the total FPI holdings in the Nifty-500 index stood at just 21%. On a QOQ basis, FPIs have cut stakes in 68% of the Nifty-500 companies. This is much more serious if you look at the Nifty 50 companies where stakes have been cut in 95% of the companies.