4200 crore sale of promoters, foreign investors
Ahmedabad: In the last three-four years, the interest of retail investors has increased in the Indian stock market. Apart from this, foreign private organizations or investors have been seen investing heavily in India. In 2023 as well, foreign players and local institutional investors, mutual fund houses supported the market. In 2023, domestic investors led the $4.2 billion equity selling spree by promoters, foreign investors and individuals.
A recent ICICI Securities report said promoters were the top sellers in the equity basket with 40 per cent, other foreign investors 38 per cent and individual traders 16 per cent. Apart from this, insurance companies also had a share of 6 percent in the total sales.
To counter this sell-off, foreign portfolio investors and mutual funds invested 2100-2100 crores in the Indian stock market.
At the end of January 2024, total FPI holdings in Indian stocks stood at around Rs. 62 trillion had reached close to Rs. 380 trillion against a total market capitalization. With this, FPI holdings fell to a decade low of 16.3 percent. ICICI Securities said the decline was attributed to increased sales and their significant outperformance in smallcaps, where FPIs have a lower allocation in their overall portfolio strategy.
So far in 2024, FPIs have sold $3.5 billion of shares and DIIs have been net buyers of $5.6 billion of Indian shares.
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