The value of foreign portfolio investors’ (FPI) holdings in the domestic equities reached $584 billion at the end of December 2022, which was 11% lower from preceding year, according to a Morningstar report.
This was largely on low return given by the Indian equities and exodus of foreign from the domestic stock market. Going by the report, the value of FPIs investments in Indian equities dropped to $584 billion as of December 2022 as compared to $654 billion at the end of December 2021.
On a quarter-on-quarter basis, the value of FPIs Investment grew 3% from $566 billion in the three months ended September 2022. This was also the second consecutive quarter, when the value of their investment in the domestic stock market had increased. Consequently, FPIs’ contribution to Indian Equity Market Capitalisation also went up during the quarter to 17.12% from 16.97% in the September 2022 quarter. After posting a robust Growth in 2020 and 2021, the global equity markets went through a turbulent phase in 2022. In fact, 2022 was a difficult year as the world witnessed multiple challenges that weighed on the international markets.