Sovereign wealth fund holdings under heavy pressure as oil prices crash

The share of sovereign wealth funds (SWFs) in foreign holdings had seen a steady rise of late, in the Indian markets.

Such funds, instituted by many — including oil-producing countries — to meet future needs, were largely seen as a stable source of capital. Ironically, the crash in oil prices has raised fears of liquidation, which could add to market volatility.

The share of such funds among overall foreign holdings had risen over the last 

18 months, shows the depository data. They accounted for 6.01 per cent of the total foreign portfolio investor (FPI) holdings in February — the last month for which