FPI bets on Indian stocks have become more concentrated over time

Top 10% of stocks account for most of their holdings

Foreign portfolio investors have increasingly put more of their eggs in a smaller basket of Indian stocks.

The recent sell-off and the advent of technology companies listing on the stock exchanges could be factors that might favour a rejig resulting in increased diversification, according to experts.

The top 10 per cent of stocks account for 93 per cent of investments, shows exchange data. It was 85 per cent in 2006. It has now been edging close to the 2001 level of 98 per cent.

“The rise in concentration in the last three years or so is merely a market feature