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:

Advertisements
This entry was posted in Uncategorized. Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s