Sell, sell, repeat: FPIs booking profit for nearly a decade now

Foreign investors' stake in listed stocks hovers near 15-year low

- KRISHNA KANT

The latest selloff by foreign portfolio investors (FPIs) is only part of a decade-long trend of cutting exposure to Indian equities. FPIs have cumulatively sold nearly ₹2.43 trillion (about $28.3 billion) worth of Indian equities on a net basis over the past two quarters, further reducing their stake in listed companies.

FPI ownership of Indian equities has been steadily declining from its peak in 2015. Their stake stood at 19.1 per cent at the end of December 2024, slightly up from the 18.8 per cent at the end of September 2024, but still near the lowest since June 2010, when it stood at 18.2 per cent.

FPIs have trimmed holdings (quarter-on-quarter basis) in 14 of the past 20 quarters and in 24 of the past 40 quarters. By contrast, they had pared stake in 15 of 40 quarters between June 2005 and March 2015.