US-based foreign portfolio investors (FPIs) have experienced the maximum decline in the value of their equity portfolio amid the current market sell-off by off-shore funds, data compiled by Moneycontrol from depositories shows.
US-based FPIs owned shares worth Rs 26.61 lakh crore in India as on February 28, a fall of more than 20 percent from the highs of September 2024 when the value of these funds' holdings touched Rs 33.3 lakh crore, data shows. The benchmark Sensex has fallen 13 percent from its September highs.
The United States is the largest source of FPI investment in India, constituting roughly half of the FPIs flows into the country.
The total value of FPI holdings decreased by Rs 15.5 lakh crore since September, of which Rs 6.7 lakh crore was on account of the US-based funds, data shows.
The data assumes significance as US funds have been realigning their investment strategies after Donald Trump took over as the president. The uncertainty due to Trump tariffs has hit markets around the world, including India.
The data is captured in the Asset under Custody (AUC) of FPIs as disclosed by NSDL and CDSL. The portfolio value has decreased due to two main reasons: falling share prices and FPIs offloading existing shares. Since October 1, FPIs have net sold shares worth Rs 2.3 lakh crore in Indian markets.
The fall in portfolio value of the US fund is even steeper if the dollar value of holdings is considered. FPIs from the US owned equity shares worth $397 billion in September 2024. This has now fallen to $304 billion, indicating nearly 24 percent fall in the value, data showed.
The rupee has depreciated nearly 4.5 percent since September and is hovering near 87.3.
The US-based FPIs data largely includes pension funds, university funds and endowment funds that choose to invest in India directly. Other kinds of funds, especially hedge funds, funds pooled from wealthy investors usually route their investment through intermediate jurisdictions such as Singapore or Ireland.
Overall FPI holdings have also taken a beating. The value of FPI holdings in dollar terms touched a 15-month low in February. Total FPI holdings stand at $713 billion compared to $931 billion in September, down 24 percent.
In rupee terms, the value of FPI holdings has registered a steeper fall from the highs of September 2024. FPIs held assets worth Rs 78 lakh crore in September 2024 compared to Rs 62 lakh crore in February 2025 , a 22 percent fall.
Norway outperforms others
Norway’s foreign funds managed to perform better than other countries since September 2024, registering lower falls than the industry average.
Norway, which is home to one of the largest sovereign wealth funds, saw its portfolio value dip only 14 percent from Rs 2.8 lakh crore in September 2024 to Rs 2.4 lakh crore. This could be due to the fact that Norges Bank, Norway’s pension fund, is a long- term investor and doesn’t sell its portfolio during market downturns
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