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MOSL: MOrning India (25/August/22): 1. India Strategy (Flowing matters – Deciphering the ‘In–N–Out’ of Institutional Flows); 2. Aditya Birla Fashion and Retail; 3. Hotels; 4. Insurance; 5. EcoScope

MOrning India (25/August/22): 1. India Strategy (Flowing matters – Deciphering the ‘In–N–Out’ of Institutional Flows); 2. Aditya Birla Fashion and Retail; 3. Hotels; 4. Insurance; 5. EcoScop

India Strategy: Flowing matters – Deciphering the ‘In–N–Out’ of Institutional Flows

• Total Institutional ownership of Indian equities has remained stable at around one-third (~33%) over the last five years. However, the verve of institutional flows has transformed distinctly of late, with domestic institutional investor (DII) flows markedly outpacing foreign institutional investor (FII) flows over the last seven years.
• FIIs: Over the last 30 years beginning FY93, FIIs have invested USD190.8b in the Indian Equity markets. The six-year period - FY10-15 - was the peak with cumulative FII inflows of USD114.5b. After peaking in FY15, FII inflows tapered off to a cumulative figure of USD11b over FY16-20. Inflows revived in FY21 at USD37.3b; post which, FY22 saw the highest ever outflows in a year at USD17.1b with USD8.6b of outflows being recorded in FY23YTD.
• DIIs: Over the last 23 years beginning FY00, DIIs have invested USD90.6b in Indian Equity markets. However, the breakup of DIIs into MFs and ex-MFs was made available in FY07; since then, DIIs have invested USD88.8b in the Indian markets. While Indian MFs invested USD81.3b, other domestic funds - ex-MFs invested USD7.5b. Notably, a large part of the USD90.6b DII flows - USD86.7b - was recorded over the last eight years (FY16-23YTD).
• At a cumulative investment of ~USD191b, the total market value of FII holdings in India stood at USD578b. The ratio of total market value of FII holdings to cumulative investments of FIIs in India stands at 3x with a bottom of 1.8x in FY13 and a peak of 3.4x in FY22. The peak market value of FII holdings stood at USD677b in FY22.

MOrning India (25/August/22): 1. India Strategy (Flowing matters – Deciphering the ‘In–N–Out’ of Institutional Flows); 2. Aditya Birla Fashion and Retail; 3. Hotels; 4. Insurance; 5. EcoScope

Today’s top research theme

India Strategy: Flowing matters – Deciphering the ‘In–N–Out’ of Institutional Flows

• Total Institutional ownership of Indian equities has remained stable at around one-third (~33%) over the last five years. However, the verve of institutional flows has transformed distinctly of late, with domestic institutional investor (DII) flows markedly outpacing foreign institutional investor (FII) flows over the last seven years.
• FIIs: Over the last 30 years beginning FY93, FIIs have invested USD190.8b in the Indian Equity markets. The six-year period - FY10-15 - was the peak with cumulative FII inflows of USD114.5b. After peaking in FY15, FII inflows tapered off to a cumulative figure of USD11b over FY16-20. Inflows revived in FY21 at USD37.3b; post which, FY22 saw the highest ever outflows in a year at USD17.1b with USD8.6b of outflows being recorded in FY23YTD.
• DIIs: Over the last 23 years beginning FY00, DIIs have invested USD90.6b in Indian Equity markets. However, the breakup of DIIs into MFs and ex-MFs was made available in FY07; since then, DIIs have invested USD88.8b in the Indian markets. While Indian MFs invested USD81.3b, other domestic funds - ex-MFs invested USD7.5b. Notably, a large part of the USD90.6b DII flows - USD86.7b - was recorded over the last eight years (FY16-23YTD).
• At a cumulative investment of ~USD191b, the total market value of FII holdings in India stood at USD578b. The ratio of total market value of FII holdings to cumulative investments of FIIs in India stands at 3x with a bottom of 1.8x in FY13 and a peak of 3.4x in FY22. The peak market value of FII holdings stood at USD677b in FY22.

MOrning India (25/August/22): 1. India Strategy (Flowing matters – Deciphering the ‘In–N–Out’ of Institutional Flows); 2. Aditya Birla Fashion and Retail; 3. Hotels; 4. Insurance; 5. EcoScope

 

 

Today’s top research theme

India Strategy: Flowing matters – Deciphering the ‘In–N–Out’ of Institutional Flows

• Total Institutional ownership of Indian equities has remained stable at around one-third (~33%) over the last five years. However, the verve of institutional flows has transformed distinctly of late, with domestic institutional investor (DII) flows markedly outpacing foreign institutional investor (FII) flows over the last seven years.
• FIIs: Over the last 30 years beginning FY93, FIIs have invested USD190.8b in the Indian Equity markets. The six-year period - FY10-15 - was the peak with cumulative FII inflows of USD114.5b. After peaking in FY15, FII inflows tapered off to a cumulative figure of USD11b over FY16-20. Inflows revived in FY21 at USD37.3b; post which, FY22 saw the highest ever outflows in a year at USD17.1b with USD8.6b of outflows being recorded in FY23YTD.
• DIIs: Over the last 23 years beginning FY00, DIIs have invested USD90.6b in Indian Equity markets. However, the breakup of DIIs into MFs and ex-MFs was made available in FY07; since then, DIIs have invested USD88.8b in the Indian markets. While Indian MFs invested USD81.3b, other domestic funds - ex-MFs invested USD7.5b. Notably, a large part of the USD90.6b DII flows - USD86.7b - was recorded over the last eight years (FY16-23YTD).
• At a cumulative investment of ~USD191b, the total market value of FII holdings in India stood at USD578b. The ratio of total market value of FII holdings to cumulative investments of FIIs in India stands at 3x with a bottom of 1.8x in FY13 and a peak of 3.4x in FY22. The peak market value of FII holdings stood at USD677b in FY22.

Piping hot news

RBI lifts business restrictions imposed on American Express

The Reserve Bank of India on Wednesday lifted the ban on American Express, more than a year after it was imposed. The central bank had restricted Amex from on-boarding new clients in April last year as it failed to meet data localisation norms. “In view of the satisfactory compliance demonstrated by American Express Banking Corp. with the circular on Storage of Payment System Data, the restrictions imposed on on- boarding of new domestic customers have been lifted with immediate effect,” the central bank said in a notification.