Goldman Sachs, Singapore Govt, Norges Among Major FPIs Hit by India Portfolio Erosion

Significant Erosion in Portfolio Value for Major FPIs in India

The March quarter proved to be a challenging period for foreign portfolio investors (FPIs) in India, with several of the largest investors seeing substantial declines in their portfolio values. Despite the benchmark Sensex only dipping by around 3% during the same period, many FPIs experienced significant losses, with some seeing double-digit erosions in the range of 10% to 22%.

Among the most affected FPIs were global financial giants such as Goldman Sachs, Camas Investments, Nalanda, Capital Group, Artisan Fund, and Kotak Funds, all of which experienced significant drops in the value of their holdings. These declines were attributed to exposure in sectors and stocks that underperformed compared to the benchmark indices. For example, while banking stocks rallied, many other sectors experienced far worse performance, leading to a broad-based decline in the portfolio values of these investors.

Highlights:

• Major FPIs, including Goldman Sachs, Camas Investments, and Kotak Funds, saw double-digit declines of up to 22%.

• The Sensex dipped just 3%, but FPIs were disproportionately impacted.

• Poor performance of sectors outside banking contributed to the losses.

• Erosion was particularly prominent in stocks with large exposure to underperforming sectors.

Government of Singapore and Norges Bank Among the Largest FPIs Hit

The Government of Singapore, the largest FPI in India, with assets under custody (AUC) totaling ₹2.33 lakh crore as of March 31, saw a decline of approximately 4.6% in the value of its holdings. The FPI holds stakes in around 70 companies, with major investments in Indian giants like HDFC Bank, Reliance Industries, ICICI Bank, Bajaj Finance, Bharti Airtel, and L&T. Despite its large and diversified portfolio, the dip in value reflected broader market conditions affecting a range of sectors beyond banking.

Similarly, Norges Bank, the second-largest FPI in India, managing ₹1.41 lakh crore across more than 100 companies, also saw a decline in its portfolio value by 5.35%. Norges’ top holdings include major stocks such as HDFC Bank, ICICI Bank, Bharti Airtel, Axis Bank, Infosys, and Kotak Mahindra Bank. The loss for Norges, while slightly larger than Singapore’s, is still indicative of the challenges faced by even the most diversified FPIs in the current market conditions.

Highlights:

• Government of Singapore saw a 4.6% dip in portfolio value, despite large stakes in Indian heavyweights.

• Norges Bank registered a 5.35% decline in its holdings, reflecting the impact of broader market conditions.

• Both FPIs hold large, diversified portfolios, yet still faced significant losses during the quarter.

Kotak Funds and Capital Group Among the Worst Hit FPIs

Kotak Funds, with an AUC of ₹11,738 crore and a disclosed stake in around 26 companies, was the hardest hit among the top 20 FPIs, seeing its portfolio value erode by nearly 22%. The fund’s largest holdings, including Shriram Finance, Max Healthcare, Apollo Hospitals, Fortis Healthcare, and Thermax, suffered substantial losses, significantly affecting the fund’s overall portfolio performance.

Similarly, the US-based Capital Group witnessed a portfolio erosion of 21.87%, with its AUC value declining to ₹76,946 crore in March from ₹98,485 crore in December 2024. The sharp fall in its portfolio was driven by underperformance in key stocks, reflecting a broader market downturn.

Highlights:

• Kotak Funds saw a 22% drop in its portfolio value, with major holdings in the healthcare and finance sectors.

• Capital Group experienced a 21.87% decline in its AUC, driven by poor performance in key stocks.

• Both funds were among the most affected by the market downturn in the March quarter.

Goldman Sachs and Other Global Giants See Declines

Goldman Sachs, one of the most well-known global financial firms, saw its portfolio value fall by approximately 11% during the March quarter. The firm disclosed stakes in around 65 companies, including major players like ITC, Adani Power, Adani Ports & Special Economic Zone, Adani Enterprises, Adani Green Energy, and GMR Airports. Despite its diversified portfolio, Goldman Sachs was heavily impacted by the underperformance of key stocks in its holdings, particularly in sectors like power and infrastructure.

While many large FPIs saw significant erosion in their portfolios, a few managed to weather the storm. Vanguard, for example, performed exceptionally well during the quarter, with its portfolio value surging nearly 33%. Vanguard holds stakes in over 50 companies, including major players like HDFC Bank, ICICI Bank, Infosys, Axis Bank, and Mahindra & Mahindra. The positive performance of its holdings helped Vanguard stand out as one of the few FPIs to achieve strong returns during the period.

Highlights:

• Goldman Sachs experienced an 11% decline in portfolio value, driven by underperforming stocks in power and infrastructure.

• Vanguard emerged as the top performer among the largest FPIs, with a 33% increase in portfolio value.

• Vanguard’s strong performance was attributed to its strategic investments in high-performing stocks like HDFC Bank and Infosys.