The Singapore government is cementing its place as the largest foreign portfolio investor (FPI) in the Indian market, with its sovereign fund’s India assets now standing roughly at the same level as the next two funds put together.
At the end of the September quarter, Singapore government held shares worth Rs 2.69 lakh crore compared to Norges Bank, which was in second place, with Rs 1.42 lakh crore of assets and US-based Capital Group whose holdings were valued at Rs 1.33 lakh crore, data compiled by Prime Database shows.
The data also highlights the phenomenal rise of the island nation’s sovereign fund over the past two-three years. The total portfolio value of the Singapore government more than doubled from Rs 1.29 lakh crore in September 2022 to Rs 2.69 lakh crore.
The Singapore government made it to the top spot among FPIs in India only in September 2022, barely beating the Capital Group, whose assets stood at Rs 1.26 lakh crore at the time. The Singapore government share holdings is now worth double that of the Capital Group, data shows.
The data is based on shareholding patterns disclosed by various listed companies and only factors in firms in which the fund owns more than 1 percent stake. Sebi rules require listed companies to disclose investors who hold above a percent in a company.
The actual portfolio value of the Singapore government may be higher since the fund may have made small-ticket investments in some companies.
It invests in listed companies through various funds, the most prominent of which is GIC. Shareholder data lists the owner as the Singapore government.
An email sent to the Singapore government remained unanswered.
Singapore's unique approach towards Indian equities
Typically, large FPIs in India stick to top blue-chip stocks but the Singapore government has started diving deeper into Indian equities by investing in mid-cap counters as well, market participants say.
Until September 2021, the fund owned more than 1 percent in 50 listed companies. The count has gone up to 76 companies, data shows. This strategy seems to have worked well as midcap stocks have largely outperformed blue-chips in the past few years.
The BSE Mid-cap index has given 215 percent returns in past five years, outperforming the 99 percent given by the benchmark Sensex during the same period, data shows.
The Singapore government’s stake in HDFC Bank had the highest market value as on November 1, followed by Reliance Industries and ICICI Bank. It owns Rs 27,519 crore worth of shares in HDFC Bank, Rs 22,557 crore in RIL and Rs 18,379 crore in ICICI Bank.
Bajaj Finance, Bharti Airtel, Infosys, Larsen & Toubro and NTPC are its other big bets, with the fund’s holding in each of the companies worth more than Rs 10,000 crore. The fund is also betting big on consumption stocks in India with exposure to companies such as Varun Beverages, Sapphire Foods and Mrs Bectors Food Specialties.
Data also suggests a strong rise in exchange-traded funds such as Vanguard, which is the fourth largest FPI in India with assets of Rs 51,436 crore. Goldman Sachs follows it in the fifth spot with assets worth Rs 50,650 crore. GQG Partners, with exposure to Adani Group stocks, is the sixth largest FPI, owning shares valued at Rs 46,049 crore.
Nalanda Partners, Amansa and Fidelity are amongst other large FPIs in the Indian market. The top 20 FPIs hold shares worth Rs 8.96 lakh crore. Total equity value of all shares owned by FPIs stood at around Rs 77 lakh crore as on September 30, depositories data shows.
Disclosure: Moneycontrol is a part of the Network18 group. Network18 is controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary.
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