Singapore government is now the largest foreign investor in India
The Singapore government has cemented its place as the largest foreign portfolio investor (FPI) in India, with its sovereign fund's assets now nearly equal to the next two funds combined. According to Prime Database, Singapore held shares worth ₹2.69 lakh crore at the end of September 2024, more than double from ₹1.29 lakh crore in September 2022. This is more than Norges Bank's (central bank of Norway) ₹1.42 lakh crore and US-based Capital Group's ₹1.33 lakh crore assets in India.
Investment strategy in Indian equities
Unlike most large FPIs in India who only invest in top-tier stocks, the Singapore government has also invested in mid-cap stocks to diversify its portfolio. From holding more than a 1% stake in 50 listed companies in September 2021, the fund now holds stakes in 76 companies. The strategy seems to be paying off as mid-cap stocks have outperformed blue-chips over the years.
Singapore's top investments in Indian market
As of November 1, Singapore government's highest-valued stake was in HDFC Bank with shares worth ₹27,519 crore. It was followed by Reliance Industries and ICICI Bank where it owns shares worth ₹22,557 crore and ₹18,379 crore respectively. Other major investments include Bajaj Finance, Bharti Airtel, Infosys, Larsen & Toubro, and NTPC with each company's holding exceeding ₹10,000 crore. The fund has also shown interest in consumer stocks like Varun Beverages and Sapphire Foods.
Other prominent FPIs in India
Data also shows a strong surge in exchange-traded funds like Vanguard, the fourth largest FPI in India with assets worth ₹51,436 crore. Goldman Sachs closely follows in the fifth position with assets worth ₹50,650 crore. GQG Partners, which has exposure to Adani Group stocks, is the sixth largest FPI with shares worth ₹46,049 crore. Other major FPIs include Nalanda Partners, Amansa, etc. The top 20 FPIs own shares worth around ₹8.96 lakh crore.
