Norges Bank Becomes India’s Second-Largest Foreign Investor as Holdings Triple Since 2022

Norges Bank, the world’s largest pension fund managing US$1.9 trillion, has become the second-largest foreign portfolio investor (FPI) in India. Since 2022, the value of its holdings in Indian equities has tripled to ₹1.42 lakh crore.

The Government of Singapore remains the largest FPI in India with assets worth ₹2.03 lakh crore. Together, these two sovereign funds lead foreign investment in Indian equities, reflecting strong international confidence in the Indian market.

Rising Investments Amidst Global Caution

While many large FPIs have become cautious, Norges Bank has sharply increased its exposure to India. Between June 2024 and June 2025, the top 15 FPIs reduced their combined holdings in India by ₹57,000 crore. In contrast, Norges Bank increased its investments by about ₹15,000 crore during the same period.

From 2022 to 2024, Norges raised India’s share in its global portfolio from 1.6% to 2.5%, reducing its exposure to China from 3.8% to 3.3%. India now accounts for nearly a quarter of the fund’s total emerging market investments, which stand at 10.6% of its portfolio.

Top Indian Companies in Norges’ Portfolio

Norges Bank holds stakes in over 500 listed Indian companies, including major names across banking, consumer goods, and IT sectors. Its largest Indian investment is in HDFC Bank, with a 1.29% stake valued at US$2.04 billion. The fund also holds significant shares in Bharti Airtel (US$1.17 billion), Infosys, and Axis Bank (US$620 million).

Importantly, Norges Bank avoids investing in companies that generate major revenue from fossil fuels, aligning with sustainable investment principles.

What This Means for Indian Investors

The growing foreign interest from reputed global funds like Norges Bank signals trust in India’s economic prospects. With strong foreign backing, Indian equities are likely to remain attractive, offering opportunities for retail and institutional investors alike.

Read more: SEBI Proposes New Rules to Boost Resident Indian Participation in FPIs.

Conclusion

Norges Bank’s rise as the second-largest FPI in India underlines the country’s growing importance in global investment portfolios. As it triples its holdings, alongside the Government of Singapore’s dominant position, these sovereign funds help boost confidence in India’s equity markets.

Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in securities are subject to market risks. Read all related documents carefully before investing.