Business News: FIIs Hit an All-Time Low in 12 Years Witnessing a 15 Percent Drop

Business News: Foreign and domestic investors are more influential in the market. Historically, foreign institutional investors (FIIs) were considered the key market stabilizers. Their position, however, has grown in importance as local investors spend more heavily. In October, FII ownership of NSE-listed companies fell to 15.98%, a 12-year low. This loss has been pronounced since March 2020, with FII wealth falling from 77.96 lakh crore in September to 71.8 lakh crore in October, representing an 8.8% drop, raising worries about the reasons for this move. 

What Do Experts Say?

Experts such as Latwar Lal and Sun Stock Brokers’ President Sameer Dalal believe that FIIs would continue to sell owing to global concerns. Despite substantial global liquidity and a healthy mutual fund sector in India, FIIs’ reticence remains inexplicable. The mutual fund share climbed from 9.32% in September to 9.58% in October, totaling Rs. 42.36 lakh crore, while DII holdings reached 76.8 lakh crore, a record high of 16.02%. Experts believe that FIIs may restart their interest in industries such as private banking, automobiles, and QSR (quick-service restaurants), where values are improving.