Foreign portfolio investors’ holding in Indian stocks rose more than 25 percent this year till August 15, driven by an increase in the value of their stakes in financial services companies.
The value of FPI holdings jumped as Indian equity benchmarks scaled new peaks this year, riding on both domestic and foreign inflows. Overseas investors poured in Rs 54,624 crore till August 15, according to data from the Securities and Exchange Board of India. Asset under management of domestic mutual funds crossed a record Rs 20 lakh crore in August, largely driven by inflows into equity mutual funds, according to data provided by the Association of Mutual Funds in India.
Overseas investors, however, turned net sellers in August, after six straight months of inflows, bringing down net investments to Rs 42,652 crore as on September 8, numbers released by National Securities Depository Ltd. show.
Financial Services Top Gainer
Nearly 25 percent of the assets under custody of FPIs are in the financial services sector as of August 15, up from 21 percent at the beginning of the year, according to data compiled by BloombergQuint. Software services’ share fell from 11.2 percent to 9 percent. Oil and gas, automobiles and ancillaries saw FPI holdings rise marginally.
Foreign Net Inflows: Rs 78,193 Crore
FPI invested nearly $12 billion (Rs 78,193 crore) in 10 sectors this year till August 15. Banks received Rs 28,889 crore ($4.5 billion). Other financial services, comprising non-banking companies and housing finance, got another Rs 6,135 crore ($935 million). These were followed by oil and gas at Rs 11,079 crore ($1.7 billion).
Foreign Net Outflows: Rs 26,311 Crore
Foreign investors net sold $4 billion (Rs 26,311 crore) in 10 sectors. Pharmaceuticals and biotech topped the exit chart with Rs 10,048 crore ($1.5 billion), followed by software services at Rs 4,477 crore ($682 million).