FII ownership of NSE 500 stocks at 3-year low: BofA Securities

Given the multiple headwinds, BofA Securities expects markets to be sideways the near-term given inflation impacting volume growth and margins across several sectors

Foreign institutional investor’s (FII’s) ownership of NSE 500 stocks hit a three-year low of 19.5 per cent, suggested a note by BofA Securities. In terms of flows into Indian equities, March 2022, BofA Securities' note said, was the sixth consecutive month of FII outflows (-$5.4 billion, most severe since March 2020) on the back of continued geopolitical risks, sustained elevated inflation led by supply-side issues, rising commodity costs.

On a month-till date (MTD) basis, April 2022, however, saw the pace of outflow slow (-$1.2