FII's investment in Indian stocks rises to close to Rs 50 lakh crore
AHMEDABAD: Investment in foreign financial institutions has more than doubled to close to Rs 20 lakh crore by the end of September 2021 in the wake of the Corona epidemic in March 2020 and the historic boom seen after the announcement of the lockdown.
According to SEBI data, the total assets of foreign funds rose to Rs 2.50 lakh crore at the end of September from Rs 41.15 lakh crore in the same period last year. Meanwhile, the assets of domestic mutual funds have risen to Rs 16.05 lakh crore during the period from Rs 4.5 lakh crore.
When the Sensex reached close to 5,000 at the time of the announcement of the lockdown in March 2020, the total market capitalization of all the companies listed on the BSE had reached Rs 101 lakh crore.
Accordingly, foreign funds accounted for a total of 30.5 per cent and domestic funds accounted for 4.5 per cent of the Indian stock market. At the end of September 2021, the market capitalization of the Indian stock market had risen to Rs 4.5 lakh crore.
Depending on the assets of foreign funds, they currently hold 12 per cent stake and domestic funds hold 4.5 per cent.
It may be noted here that in this one-and-a-half year period, domestic funds are to be sold in the market to the tune of Rs 30,31 crore, while foreign funds are to be bought in the cash segment for Rs 1,3,8 crore.
Their share of the total market value has declined by 1.2 per cent due to the sale of domestic funds. Funds from the US, Mauritius, Singapore and Luxembourg account for the largest share of foreign investment.
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