InvestorQ : Is it true that amidst all this selling, the share of FPIs has gone down in Indian stocks?
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Is it true that amidst all this selling, the share of FPIs has gone down in Indian stocks?

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Riya Dwivedi answered.
7 days ago
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There are two aspects to your query. Let me talk about the FPI selling first For the previous week ended 06th May, FPIs withdrew Rs6,400 crore from Indian equity markets in 4 trading sessions after RBI hiked rates by 40 bps and later the Fed also hiked rates by 50 bps. This was amplified by headwinds like crude prices, OPM pressures and Fed hawkishness. FPIs withdrew Rs.1.65 trillion from Indian equities in the last 7 months and this is across Asia.

At the same time, the ownership of global investors in Nifty 500 companies is at its lowest of 19.5%, a holding last seen in early 2019. Last year, FPI holdings were well above 21.2%. It is an eloquent indication of FPIs going light on India. During the same period, the domestic funds raised stakes in Indian stocks, IT and hydrocarbons principally. FPI selling in India has been largely offset by the aggressive buying by domestic funds and retail investors.

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