FPIs pruned exposure to banking and financial stocks in FY22: Analysis

As FPIs deploy the maximum in the banking sector, it has to bear the brunt during episodes of capital repatriation.

Foreign portfolio investors (FPIs) drastically pruned their exposure to banking and financial stocks during the 12-month period ended March 2022. In March 2021, FPIs had invested every third dollar (33.1 per cent) in banking and financial stocks. This came down by 430 basis points (bps) to 29.1 per cent at the end of March 2022, shows an analysis done by FPIs. The drop in the exposure to the financial space comes on the back of $17.1 billion selling by overseas investors in FY22.

As FPIs deploy the maximum in the banking sector, it has to bear the brunt during episodes