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.
This story is from the {{IssueName}} edition of {{MagazineName}}.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the {{IssueName}} edition of {{MagazineName}}.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
Look Before You Leap
In 2025, Investors Will Need To Factor In Volatility Across Asset Classes
"Focus on the challenge of each customer"
SHASHANK KUMAR MD & CO-FOUNDER I RAZORPAY Razorpay is India's first full-stack financial solutions company
PEDAL ON THE FUTURE
THE MG WINDSOR EV, WITH ITS FUTURISTIC AND MINIMALIST DESIGN, COMBINES THE BEST OF BOTH WORLDS-COMFORT AND TECHNOLOGY
BREATHE EASY
Whether you're battling allergies, looking to remove pollutants, or simply want to breathe easier, the right air purifier can make a difference
The Taste of India in a Glass
FROM ROYAL LIQUEURS TO DISTILLED MAHUA, INDIAN HERITAGE ALCOHOLIC BEVERAGES ARE HAVING THEIR DAY IN THE SUN
MISSING ADVISORS
INDIA HAS JUST ONE INVESTMENT ADVISOR FOR NEARLY EVERY 200,000 INVESTORS. AT A TIME WHEN RETAIL PARTICIPATION IN THE STOCK MARKETS IS BOOMING, THIS ASSUMES SIGNIFICANCE
TURNING A CORNER
SHARED ELECTRIC MOBILITY START-UP YULU'S SHIFT TO SERVICING THE QUICK COMMERCE SECTOR IS HELPING IT GROW FAST. IT IS NOW FOCUSSING ON IMPROVING ROAD SAFETY FEATURES AS IT TURNS EBITDA POSITIVE
REALITY CHECK
INDIAN STOCK MARKETS PLUNGED BEGINNING OCTOBER FOR A HOST OF REASONS, INCLUDING A FALL IN FII OWNERSHIP. HOW DEEP WILL THE CORRECTION BE?
TRUMP'S TRADE TANGO
The return of Donald Trump as the 47th President of the US has put the global economy on edge. India, too, is unlikely to remain unaffected. How will policymakers meet this latest challenge?
"The essence of the Trump administration will be transactional”
Global investor, analyst, and best-selling author Ruchir Sharma decodes why Donald Trump won the elections, what India should do, the risks, and more
