Spike in sovereign wealth funds' Indian market holding belies sell-off buzz

Holdings in Indian equities are higher now than before the pandemic took hold

Sovereign wealth funds (SWFs) have increased their holdings in the Indian stock market since March, contrary to expectations that they would head for the exit amid the Covid-19 pandemic.  

They have a higher share among foreign investors in Indian equities now than in the first three months of the year, before Covid-19 became widespread. SWFs typically look to invest money gained from natural resources to use during periods of downturn. Many of the largest funds are from countries which have been rich in crude oil reserves.

Crude oil saw prices crash and demand fall as many economies locked down to stop the