FPIs Cut Holdings in HDFC Bank, Infosys; Increase Stakes in Paytm, Polycab India Since 2022

Foreign Portfolio Investors (FPIs) have increased investments across a larger number of Indian companies since 2022, despite a fall in their overall shareholding in domestic equities.  

A report by ICICI Securities showed that the number of stocks with more than 1% FPI ownership rose from around 900 in March 2022 to nearly 1,300 by March 2026. 

At the same time, aggregate FPI ownership in Indian equities declined to nearly 15%, compared with around 20% a decade earlier. The report noted that most of the reduction came after the Russia-Ukraine conflict in 2022, which led to sustained selling by foreign investors. 

Stakes Reduced in Large-Cap Companies 

Several large-cap companies saw a decline in foreign investor holdings during the period. The combined share of HDFC Bank and the erstwhile HDFC Ltd in FPI portfolios dropped from 11.6% in March 2022 to 6.9% in March 2026. 

Foreign holdings in Reliance Industries fell from 9.1% to 5.3%. Exposure to Infosys decline from 5.8% to 2.1%, while holdings in Tata Consultancy Services (TCS) fell from 4.2% to 1.3%. 

The report also noted lower exposure to companies such as Kotak Mahindra Bank and Asian Paints. The share of top holdings in overall FPI portfolios declined from 40.9% to 21.3% during the period. 

Higher Exposure in Other Segments 

FPIs increased stakes in companies linked to healthcare, manufacturing, financial services and domestic consumption. Holdings in Eternal rose from 10.4% to 30.8%, while stake in Polycab India increased from 5.8% to 18.2%. 

Among mid-cap companies, FPI holding in One 97 Communications increased from 4.4% to 24.3%. Holdings in Max Healthcare Institute rose from 14.6% to 45.4%. 

Outflows Continue in 2026 

Financial stocks recorded the highest FPI outflows since 2022 at ₹1.8 trillion, followed by IT and hardware at ₹1.6 trillion and energy at ₹1 trillion. 

FPIs remained net sellers in April 2026, withdrawing ₹60,900 crore from Indian equities. So far in calendar year 2026, foreign investors have pulled out nearly $21.7 billion from Indian markets. 

Read More: GE Aerospace Pune Facility Receives Fresh ₹100 Crore Investment! 

Conclusion  

The data showed a shift in FPI allocation patterns since 2022, with reduced concentration in traditional large-cap stocks and increased exposure across a wider set of companies and sectors. 

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