13/01/2025
The beauty is that FII holding has dropped from 24% to under 16% and yet Indian markets have gained in the last 3-4 years. FIIs will not be any significant influencer in the markets 1-2 years down the line. They remained invested in India, when things were not that great between 2005 and 2020. However, Post Covid, the Indian investors and institutions have taken control over the markets and have absorbed a lot of FII selling and the markets went on going up despite FII selling. So, the FIIs particularly the Western ones lost control over the Indian markets. FIIs now have less than 16% stake in the Indian markets. Once it falls to around 13-14%, there cannot be further selling by them as most of the 13-14% stake is strategic in nature and that will not come to the markets. They exited after all these years without making much.