Despite the rally inwards mid-caps for the past times iii years, overseas investors proceed to present their preference for bluish chips.
In the past times 5 fiscal years, nearly iii out of every iv dollars, or most 75 per cent of the coin set inwards past times unusual portfolio investors (FPIs), convey been invested inwards the transcend 10 per cent of the BSE 500 companies amongst the highest marketplace capitalisation.
For instance, the transcend l companies past times marketplace capitalisation made upward 71 per cent of the full FPI investment inwards the BSE 500 universe, the shareholding designing for the quarter ended March 2017 shows. In fact, the transcend 5 companies inwards the index bagged nearly 25 per cent of the investments, hinting at the sort of concentrated portfolio held past times the FPIs.
In contrast the bottom l companies convey received less than 1 per cent of the investment from unusual investors for each of the 5 years.
Shareholding information for the quarter ended March 2017 reveals FPI investments inwards these firms made upward a meagre 0.3 per cent of their overall investment in the BSE 500 pack.
The primary argue for their bias for blue-chips is liquidity. The lower liquidity inwards smaller companies makes it expensive for unusual investors to buy into such companies or dice them.
BSE 500 companies draw of piece of work organisation human relationship for to a greater extent than than xc per cent of the exchange's overall marketplace capitalisation together with contribute to a greater extent than than 75 per cent to the overall volumes, present telephone commutation data.
In the past times 5 years, FPIs convey cumulatively bought Indian equities worth Rs 3.55 lakh crore, every bit per depository data.
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