Are FIIs really smart? Part 2
Worth of holdings falls by three-fourths; more than stock sale, erosion in value of investments contributes to decline
Nesil Staney - Mint
Foreign institutional investors, or FIIs, the main drivers of Indian equities, have seen the value of their India portfolio drop three-fourths, or about $190 billion, this year, a tumultuous one for markets worldwide. FII holdings dropped to below $60 billion this week, from around $244 billion in January.
More than their sale of stocks, the erosion in the value of FII investments has contributed to the decline, worsened by a 20% drop in the value of the rupee against the dollar this year.
The mark-to-market value of FII investments in the Bombay Stock Exchange’s top 500 companies by market capitalization, in the BSE-500 index, had slumped to around $138 billion by end-June and further down to about $82 billion around end-September.
Click here for the full story.
More: