Amid the weak global cues, the Foreign Portfolio Investors (FPI) have been briefly a seller in the Indian share market during the October-December quarter of the financial year 2021-22 (Q3FY22).

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According to a research report by PRIME Database Group, the FPIs share by value in companies listed on NSE went down to a 9-year low of 20.74 per cent as on December 31, 2021, from 21.46 per cent as on September 30, 2021.

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“Most notably, FPIs pulled out Rs 44,820 crore from Financial Services and Software sector during the quarter while investing Rs 20,334 crore in Retail,” according to the research report.

While in INR value terms, the FPI holding stood at Rs 53.78 lakh crore, down 1.67 per cent quarter-on-quarter, the report said. 

It pointed out, “FPIs are the largest non-promoter shareholders in the Indian market and their investment decisions have a huge bearing on the stock prices and overall direction of market. It is thus time that complete details of all their holdings are made mandatory to be disclosed in India.”

“Considering only free float (non-promoter holding), FPI share by value went down to 41.81 per cent in the quarter ending December 2021 from 43.32 per cent one quarter back. While in terms of ownership by number of shares or share by volume, FPI share went down to 5.84 per cent Q3FY22 as compared to 5.88 per cent in the previous quarter,” PRIME Database Group further said in report.

Banking heavyweights and financial companies such as HDFC Bank (72.14 per cent), ICIC Bank (56.38 per cent) and Shriram Transport Finance (53.16 per cent) are the top three of 10 companies with highest FPI holding during Q3FY22, the research report said.

While Reliance Industries (Rs 4,32,403 crore), HDFC Bank (Rs 4,02,310 crore) and Infosys (Rs 4,00,019 crore) are among the top three heavyweights out of 10 companies with highest FPI holding in INR value terms as on December quarter, the report mentioned.

In terms of change from the previous quarter, IRB Infra (Rise in percent holding 34.81 per cent), Gokaldas Exports Ltd (Rise in percent holding 8 per cent), Saregama India Ltd (Rise in percent holding 7 per cent) are the three companies of top 10 which saw the highest increase in FPI holdings in percentage terms from previous quarter.

Just Dial (13.21 per cent) Cerebra Integrated Technologies (9.5 per cent) and Kewal Kiran Clothing (8 per cent) are the top three companies of 10 which saw the highest decrease in FPI holdings in percentage terms from previous quarter.

Similarly, Capital, Government of Singapore and Norges were top three of 10 FPIs in terms of their exposure to companies listed on NSE with holding greater than 1 per cent, the research report said.