MANY BUSINESSES in India have aligned themselves with the idea of Aatmanirbhar Bharat or self-reliant India. Now, it is the turn of the stock markets. How can they be self-reliant? By not depending on foreign investors to drive a rally or a bull run. And the markets are well on their way. Let us consider some hard numbers. The overall stake of mutual funds (MFs) in the universe of companies listed on the National Stock Exchange (NSE) moved up for the third straight quarter in December 2021 to touch 7.4 percent. If one takes into account only the elite Nifty 50 universe, then the stake inched up to 8.5 percent—the highest level in two decades. Individual retail investors have also upped their overall stake in the Nifty 50 companies to 8.3 percent, and 9.7 percent in the complete NSE universe—the highest in nearly 14 years.
Meanwhile, the stake of foreign portfolio investors (FPIs)-often looked at as the primary driver of bull runs and rallies in Indian stock markets-has consistently fallen over the quarters with the December quarter witnessing a fall of 81 basis points (bps) to 19.7 percent in NSE-listed companies. Among the top 500 listed firms, FPIs' stake fell by 65 bps to 20.9 percent. This was the fourth consecutive quarter that saw a dip in the stake held by foreign investors-now at its lowest level in nine years. In terms of net flows, 2022 has seen FPIs make net sales of nearly $17 billion till May 2. And they have been net sellers since October 2021.
Has this affected India's stock markets? While the benchmark S&P BSE Sensex is down a little over 2 percent in 2022 (till May 2), in March, when FPIs were net sellers of nearly $5.4 billion, the 30-share barometer rose over 4 percent. In 2021, FPIS put in $3.8 billion; the Sensex rose almost 22 percent—its best annual gain since 2017.
Diese Geschichte stammt aus der May 29, 2022-Ausgabe von Business Today.
Starten Sie Ihre 7-tägige kostenlose Testversion von Magzter GOLD, um auf Tausende kuratierte Premium-Storys sowie über 8.000 Zeitschriften und Zeitungen zuzugreifen.
Bereits Abonnent ? Anmelden
Diese Geschichte stammt aus der May 29, 2022-Ausgabe von Business Today.
Starten Sie Ihre 7-tägige kostenlose Testversion von Magzter GOLD, um auf Tausende kuratierte Premium-Storys sowie über 8.000 Zeitschriften und Zeitungen zuzugreifen.
Bereits Abonnent? Anmelden
Pension Scheme - Safety Net
The move to introduce the UPS has evoked mixed reactions. Analysts believe its funding will have limited impact on the fiscal math
The Reit Choice?
Real Estate Investment Trusts (Reits) Are Gaining Traction As Interest Rates Stabilise. But Returns Could Be Affected By Adverse Economic Conditions And Market Volatility
CORPORATE - Calling to Account
The sudden exit of Byju's auditor BDO marks the latest in a long series of setbacks for the edtech firm
EMPLOYMENT: Skills Push
The skill development ministry plans to partner with the UGC to improve the employability of undergraduates
Building on a Vision
L&T'S CHAIRMAN EMERITUS A. M. NAIK HAS BUILT A MAMMOTH ENTERPRISE THAT IS BUILDING A NEW INDIA, FROM ITS METRO RAIL SYSTEMS TO THE RAM TEMPLE
"KYS more important than KYC"
Vijay Kedia is a renowned equity investor; the value of his listed portfolio stands at around ₹1,750 crore
ROXX STAR
THE THAR ROXX COMBINES LUXURY WITH PERFORMANCE TO MAKE A STRONG STATEMENT IN THE MID-SIZE SUV SEGMENT
HIT THE GROUND RUNNING
Smartwatches have become indispensable tools for runners, offering real-time insights into pace, distance, heart rate, and more. Here are a few you can consider
TURNING THE TABLES
INDIA'S FURNITURE MARKET IS POISED FOR A GLOBAL TAKE-OFF. ALREADY, A HOST OF GLOBAL BRANDS HAVE MADE THE COUNTRY THEIR HOME, BUT INDIAN COMPANIES ARE NOT TOO FAR BEHIND
THE EVOLUTION OF ATHERA
IDENTIFYING OPPORTUNITIES IN ADVANCE HAS STOOD THIS BENGALURU-BASED VC FUND IN GOOD STEAD. NOW, WITH A HEIGHTENED FOCUS ON TECHNOLOGY, IT WANTS TO SUSTAIN THE SUCCESS