Stocks in FPI red-flag list jump to five on strong foreign inflows

The number of stocks on the so-called red flag list — a system to monitor foreign shareholding — has increased to five. In September, there was only one stock on the list: Procter & Gamble Hygiene & Health Care. Since then, Novartis India, IndusInd Bank, HDFC Bank, and newly-listed Gland Pharma have been to it.

The increased number of stocks on the list is an indicator of foreign portfolio investors’ (FPIs’) bullishness towards domestic equities. Since October, overseas investors have pumped in more than $17 billion (Rs 1.25 trillion) into the domestic equities.

A red flag is activated whenever foreign shareholding is