Foreign institutional investor (FII) ownership in Indian equities has fallen to a 17-year low of 15.1%, but the decline may not tell the full story. According to OmniScience Capital, the absolute value of foreign holdings has grown 3.6 times to around $783 billion since 2012, even as domestic investors have expanded their presence in the market at a faster pace.
The investment firm argues that the falling ownership share should not be viewed in isolation, as rising domestic participation has changed India's equity ownership landscape. The shift suggests that a lower FII ownership percentage does not necessarily indicate waning foreign investor confidence.
