Statsguru: Falling foreign ownership in booming Indian stock market

Foreign investors invested more money in riskier midcap and smallcap stocks even as their overall stake came down

Foreign investors now own a smaller share in the booming Indian stock market than before.
 

Their holdings now account for 16.3 per cent of the total market, likely the lowest in a decade, according to a report by brokerage firm ICICI Securities. However, the value of their holdings continues to rise and it touched nearly Rs 62 trillion as of January-end (Chart 1).


 

The decline in foreign ownership also reflects increased buying by domestic institutions, incl­u­ding mutual funds. Domestic institutional inv­e­stors owned a nearly 16 per cent stake, according to the latest available December quarter num­bers. It was