FIIs hold $717 billion worth of Indian stocks, but trim exposure across 56% of Nifty 500 companies. Where are they investing?

What happened: FIIs held $717 billion in Indian stocks but trimmed exposure across 56% of Nifty 500 companies over the past year, while DII ownership rose to a record. Key numbers: HDFC Bank $54.3 billion, ICICI Bank $50.1 billion, Reliance $30 billion, Bharti Airtel $29.2 billion, Axis Bank $16.4 billion. BFSI 33.1% of FII allocation, down 130 bps QoQ. Why it matters: The data shows diverging institutional flows, with FIIs selling in the secondary market amid higher oil prices, rising bond yields and higher interest rates while DIIs increased stakes across market caps.

FIIs held $717 billion in Indian stocks but trimmed exposure across 56% of Nifty 500 companies over the past year, while DII ownership rose to a record.

The data shows diverging institutional flows, with FIIs selling in the secondary market amid higher oil prices, rising bond yields and higher interest rates while DIIs increased stakes across market caps.