FIIs outpace domestic investors in BSE200
Every one stock held by domestic institutions, foreign funds own two, indicating higher holding of FIIs in these companies.
According to data provided by brokerage firm Motilal Oswal, the ratio of investment by foreign institutional investors compared with domestic institutional investors in BSE 200 companies has gone up to 2:1 in June this year from 1:4 five years ago. This shows that for every one stock held by domestic institutions, foreign funds own two, indicating higher holding of FIIs in these companies.
Three factors contributed to this increased buying by FIIs, the latest being the formation of a stable government in New Delhi with the main ruling party having a majority on its own. The rupee’s fall against the dollar and attractive valuations were the other main reasons that led to increased foreign fund fl ows. In the past one year, the sharpest change in the FII-DII ratio was seen in sectors such as infra, tech, telecom and NBFCs.