In this article, we are going to look at the FPI holding. It has been recently announced that the FPI holdings in the Indian stocks have officially hit the decadal low of 16.6% in this month. This has happened after the strong domestic fundamentals. It has been reported that the aggregate holdings of the FPI are standing at Rs. 54.5 lakh crore and it is implying 16.6% holdings of the entire Indian equities as of this month as it is the lowest after 2012. Recently, FPI has sold Indian equities which are worth over Rs. 40,000 crores from September 2023. Read this article till the last to learn every single thing.
The holding of FPI in the stocks of India has now officially gone to its lowest levels in the decade despite the large selling of domestic equities which are by overseas investors from September this year. According to the officials, the aggregate holdings of the FPI are officially standing at Rs. 54.5 lakh crore as it is implying 16.6% holdings in the entire Indian equities as of this month. It has been claimed that this is the biggest lowest from the year 2012. According to ICICI Securities, Foreign Portfolio Investors (FPI) have sold Indian equities that were worth over Rs. 40,000 crores from September 2023. Continue reading this article till the end.
As per the reports by ICICI Securities, at this time the drop in the holdings of FPI is because of the sharp selling which has been observed since September this year. And it is also because of the underperformance which happened because of the portfolio orientation. The share outperformance of small, mid, and microcaps where Foreign Portfolio Investors (FPI) have a little bit fewer holdings which resulted in the dip in the holdings of FPI in the entire equities of India. Keep reading this topic in the next paragraph of this article.
Brokerages are in believe of favorable cycles in terms of corporate profits, NPA, tax buoyancy, investment rare, inflation, and current account. There is a big potential which is reversing the record low FPI holdings in the yield spike which fearing rede also the valuations turn reasonable. According to the reports by the brokerages, the current active market cap is based on the mutual fund portfolio which is right to continue looking to buy the sectors that are led by the private banks, healthcare, and some other sectors.