FPI ownership in Sensex companies rises in June quarter

New Delhi: Foreign portfolio investors (FPIs) raised their exposure in Sensex companies in the April-June quarter, as against the preceding three months, showed data compiled by leading stock exchange BSE.

In total, FPIs own 28.2 percent in the top 30 listed companies on the BSE in the June quarter, compared to 26.3 percent in January-March of this year.

Domestic institutional investors too raised their holding in S&P BSE Sensex to 15.6 percent, from 15.2 percent.

Total market capitalisation of Sensex companies rose to Rs 29,39,121 crore during the period under review, from Rs 27,12,410 crore in the March quarter.

Apart from the Sensex, FPIs increased their holding in BSE-100 companies, BSE-200, BSE-500, Group A companies, BSE large-cap, mid-cap and small-cap. However, FPIs' stake in Sensex 50 companies remains unchanged at 28 percent.

Market experts said a slew of factors, including sound progress in rollout of the Goods and Services Tax (GST) and prediction of a normal monsoon, prompted FPIs to infuse money in the Indian stock markets.

"The most prominent reason for FPIs' net inflow is expectation from the government that it would speed up development and economic reforms in their last two years in office before going for elections in 2019. The government finalising GST rates... In addition to forecast of normal monsoon also led to positive sentiment," said Himanshu Srivastava, Senior Analyst Manager Research at Morningstar India.

In a statement issued today, the exchange said it will provide the shareholding pattern information quarterly on the last working day of the subsequent month. It is part of BSE's endeavours to bring value-added information which facilitates swift decision-making for all stakeholders of the capital market ecosystem.