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FPI stock holding slips 14% to $523 billion in June quarter: Report

Aug 17, 2022 02:51 PM IST

This was the third consecutive quarterly decline in the value of FPIs' investments in Indian equities.

The value of the foreign portfolio investors (FPI) holdings in the domestic equities dropped 14 per cent to USD 523 billion in the three months ended June 2022 from the preceding quarter, according to a Morningstar report. This was the third consecutive quarterly decline in the value of FPIs' investments in Indian equities.

Foreign investors were cautious since the start of the year and it intensified as the year progressed, following the influence of worrying trends in both global and domestic markets. "During the quarter ended June 2022, the value of FPI investments in Indian equities fell by 14 per cent to USD 523 billion from USD 612 billion recorded in the previous quarter," the report noted.

As of June 2021, the value of FPI investments in Indian equities was USD 592 billion. FPIs' contribution to Indian equity market capitalisation also fell during the quarter under review to 16.9 per cent from 17.8 per cent in the March quarter.

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 quarter ended June 2022, FPIs sold net assets worth USD 13.85 billion. It was, however, lower than the net pull out of USD 14.59 billion seen during the quarter ended March. During the quarter ended June 2022, FPIs sold net assets worth USD 13.85 billion.