Benchmark indices ended marginally lower on Friday led by a decline in HDFC, HDFC Bank, Sun Pharma and Axis Bank.
Shares of Dr Reddy’s Laboratories fell 30 per cent to Rs 1,873 apiece in the intra-day trade, also their 52-week low on the National Stock Exchange (NSE), after media reported Jefferies, in its research note, said that the Form 483 issued by US Food and Drug Administration (US FDA) to drug firm’s Bachupally plant contains four repeat observations out of the total 11 observations. The stock ended 4.17 per cent lower at Rs 2,556.
Share of sovereign funds in FPI at its highest for FY19, but holdings fall
The share of sovereign wealth funds (SWFs), as a proportion of total foreign portfolio investments in Indian equities, is at its highest for the current fiscal at 5.74 per cent. However, the value of their investment was Rs 1.54 trillion as of January; lower than the Rs 1.56 trillion in December. It is also lower than the Rs 1.7 trillion as of August.
The reason for the higher share, despite declining absolute holdings, is the overall decrease in foreign investor holdings. SWFs are considered to be more stable than other sources of foreign investment such as hedge funds. It typically consists of long-term capital set up and managed by sovereign governments, to meet future needs.