Mumbai: The gap owned between overseas investors and domestic institutions in Indian companies Kromp in the quarter of December to a record. Without prejudice to sale by foreigners and continuous purchases from domestic investment funds and insurers have limited this difference.
According to an ET examination, the gap has fallen to 29 basic points from 31 December, from a highlight of 1,031 BPS in March 2015.
Foreign portfolio investors (FPIs) sold shares worth £ 1.51 Lakh Crore during the quarter of December and another £ 67,000 crore since 1 January. A basic point is a hundredth percentage point.
The ownership of FPIs in NSE-GEGUTED companies decreased by 56 basic points from 17.55% to 16.99% at the end of December 2024, the lowest in 12 years, while the Share of Diis 23 basic points climbed from 16.46% to a record high of 16.69% during this period.
Domestic institutions are on schedule to surpass the ownership of foreign investors in Indian companies if the foreign sale continues.
“According to all likes, domestic institutions are likely to surpass foreign institutions in ownership of India Inc as FPIs, they are expected to continue to sell, with the risk-delivering ratio that prefer US shares and debts,” said Dhiraj Relli, MD, HDFC Securities. “In the meantime, diis remain strong, supported by record-high SIP inflow and financing houses with 5-6% cash reserves that are ready for deployment in the case of further market dips.”
Diis, including investment funds, insurance companies, pension funds and banks, invested almost RS 1.85 Lakh Crore in the quarter of December, which has effectively compensated the decrease in FPI companies in the past quarters. The widest gap between FPI and DII Holdings was registered in March 2015, when FPIs had 20.70% and had 10.38%.
This growth in Dii Holdings is supported by regular Systematic Investment Plan (SIP) contributions to Equity Investment Funds. The SIP collection was £ 26,459 Crore in December, compared to £ 25,320 Crore and £ 25,323 in the past two months.
