Fund has investments worth between Rs 250-350 crore in Container Corporation of India, Tech Mahindra, Tata Chemicals and ING Vysya Bank
Indian stocks have been a bad bet for the world's largest sovereign wealth fund, slowing down the behemoth's equity returns. The returns from the Indian stock market were among the worst for Norway’s Government Pension Fund Global, which manages in excess of $700 billion.
“Sorted by country, US and German stocks contributed most to the excess return, while investments in Japan and India made the largest negative contributions,” said its latest quarterly report.
A detailed break-up of its India holdings was not available. However, an examination of companies in which it has at least one per cent stake threw up 49 names with a total value of Rs 4,002.7 crore. Interestingly, a more comprehensive list of holdings released at the end of 2012 showed investments in 122 Indian companies.
For the latest quarter, its largest holding by value is Zee Entertainment, with a 1.9 per cent stake worth Rs 437.5 crore. It also has investments worth between Rs 250 and Rs 350 crore in Container Corp of India, Tech Mahindra, Tata Chemicals and ING Vysya Bank.
The negative impact comes despite a positive return for Indian markets in the June quarter.
The BSE’s Sensex index, whose returns are held to be representative of the overall market movement, rose 2.81 per cent during the quarter to 19,395.81 at the end of June.
The culprit may have been the rupee, which dropped 9.41 per cent against the dollar to Rs.59.39 during the June quarter. A depreciating currency reduces returns of foreign investors.
The report mentioned that the fund’s returns are measured in a weighted combination of the currencies in the fund’s benchmark indices for equities and bonds. The fund’s currency basket consisted of 35 currencies at the end of the second quarter, said the report.
Most of these 26 companies were agro-based or pharmaceutical companies, showed a table given by the minister in the lower house