Foreign ownership in BSE 500 companies — which represent nearly 93% of the total market capitalization on BSE — are a tad higher than of the government, data from stock exchanges and think-tanks shows.
They controlled 22.9% of these companies, which cover all 20 major industries, against government's 21.8%. While on the face of it, promoters (29.3%) and the government seem to be India Inc's primary owners — the fact is foreigners come in second across all classes (portfolio, direct and subsidiary), owning more than the government does.
The Indian public owned 8.17% stake, insurers 4.74%, non-promoter corporates 4.16% and mutual funds 3.91%, data up to the June quarter showed. The 30-share sensex, which has been a stellar performer among global indices in 2009, is also firmly in foreign grips. Foreigners owned 26.1% in the 30 famous Indian firms, less than 32.2% owned by promoters, but almost double of the 13% held by the government.
"FII ownership of the broad market has risen to 15.7% (including American Depository Receipts / Global Depository Receipts) from 15% in March, reversing a six-quarter trend. In dollar terms, this represents a 64% rise in the FII portfolio to $148 billion by the end of the quarter (April-June), compared with a 45% rise in the markets," said Citigroup analyst Aditya Narain.
July has witnessed another $2.4billion in inflows — if this holds, or more money comes in, ownership will rise, though the market impact will probably be less. Foreign investor— who pumped in $5.6 billion over April-June 2009 — have reversed a six quarter flight. The market's sharp rise (49%) over the quarter would appear a cause and consequence of this inflow.
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