FPIs trim financial exposure: Lowest in six years at 29%, shows data

At 28.97%, allocation lowest since 2018; Down from peak of 41.17%

Foreign portfolio investor (FPI) exposure to financial services stocks has fallen to 28.97 per cent, the lowest since 2018, according to data provided by PRIME Infobase. At their peak in December 2019, nearly 41.2 per cent of FPI assets under custody (AUC) were in the banking, financial services and insurance stocks.

The current allocation is also below the sector’s weighting of 33 per cent in the benchmark National Stock Exchange Nifty50 Index. However, it is largely in line with that in the Nifty 500.

Given the availability of large and liquid names, overseas funds have historically held a huge overweight