The assets under management of FPIs were $376 billion (Rs 2.6 trillion) as on December 15, 2018, which is 18.3 per cent of the country’s total market capitalisation.
Highlights
FPI fund flow into domestic equities dropped below 1 per cent in December 2018.
The combined FPI outflows from equity and debt instruments in 2018 was the highest since global financial crisis.
The cumulative FPI flow in the past three years was one-fourth of the inflows in the three years prior to 2016.
The participation of foreign portfolio investors (FPIs) in the Indian equities markets is waning. Their fund flow into domestic equities as a percentage of the country’s total market capitalisation dropped below 1 per cent in December 2018 compared with 3 per cent two years ago. Also, the FPI trading volume as a percentage of the total volume has dropped to 30 per cent from the 50 per cent in the past three years. The combined FPI outflows of $11.32 billion from equity and debt instruments in 2018 was the highest since the global financial crisis.
FPIs hold nearly 22 per cent stake in the BSE 100 companies.
The assets under management of FPIs were $376 billion (Rs 2.6 trillion) as on December 15, 2018, which is 18.3 per cent of the country’s total market capitalisation. FPIs sold equities worth $4.5 billion in 2018; they were net sellers for the first time since 2008. The cumulative FPI flow in the past three years at $6.4 billion was just one-fourth of the inflows in the three years prior to 2016.
