--- title: "FPIs cut stakes in HDFC Bank, Reliance since 2022; bet on Paytm, Eternal" type: "News" locale: "en" url: "https://longbridge.com/en/news/286744257.md" description: "Foreign portfolio investors (FPIs) have diversified their investments in Indian equities since 2022, increasing the number of stocks with over 1% stake from 900 to nearly 1,300. However, overall FPI ownership has declined from 20% to 15%, primarily due to significant selling in large-cap stocks like HDFC Bank and Reliance. Despite this, FPIs have increased stakes in high-growth sectors, with notable investments in Eternal and Paytm. In April 2026, FPIs were net sellers, withdrawing ₹60,900 crore from Indian equities." datetime: "2026-05-18T01:12:53.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/286744257.md) - [en](https://longbridge.com/en/news/286744257.md) - [zh-HK](https://longbridge.com/zh-HK/news/286744257.md) --- # FPIs cut stakes in HDFC Bank, Reliance since 2022; bet on Paytm, Eternal Foreign portfolio investors (FPIs) have significantly broadened their exposure to Indian equities since 2022, increasing the number of stocks in which they hold over 1 per cent stake, even as their overall ownership in the market declined due to aggressive selling in large-cap names, according to a report by ICICI Securities. The aggregate FPI holding in Indian equities, as per the brokerage, has fallen to around 15 per cent currently, from nearly 20 per cent a decade ago, with most of the decline occurring after the Russia-Ukraine conflict in 2022. However, the nature of FPI investments has changed significantly during this period. The number of stocks where FPIs own more than 1 per cent stake has increased from around 900 in March 2022 to nearly 1,300 currently, signalling a “broader participation across sectors and market capitalisations”. “The aforementioned trends indicate that FPI investments in India are becoming broad-based driven by growth opportunities. But, the copious selling in the erstwhile concentrated positions is skewing the overall picture,” the brokerage said. ## Taking stock: What are FPIs selling? The sharpest reduction in FPI holdings has been visible in heavyweight large-cap stocks that earlier dominated foreign portfolios. Among the biggest cuts, the combined contribution of HDFC and HDFC Bank to FPI portfolios fell from 11.6 per cent in March 2022 to 6.9 per cent in March 2026, a decline of 4.7 percentage points. Besides, FPIs also sharply reduced exposure to Reliance Industries, where portfolio holding declined from 9.1 per cent to 5.3 per cent. Holdings in Infosys dropped from 5.8 per cent to 2.1 per cent, while exposure to TCS fell from 4.2 per cent to 1.3 per cent over the same period. Other major reductions were seen in Kotak Mahindra Bank, where holdings contribution dropped from 3.1 per cent to 1.5 per cent, and Asian Paints, where it declined from 1.2 per cent to 0.4 per cent. Overall, the top holdings that accounted for 40.9 per cent of FPI portfolios in March 2022 now contribute only 21.3 per cent. At the sector level, financials, IT, energy, FMCG and consumer discretionary companies contributed the most to FPI selling since 2022. Financials alone saw net outflows of ₹1.8 trillion, followed by IT & hardware at ₹1.6 trillion and energy at ₹1 trillion. ## Eternal, Paytm, Polycab among FPIs top buys At the same time, FPIs have increased investments in several high-growth sectors and emerging businesses across market caps. In the large-cap space, FPIs raised holdings in Eternal from 10.4 per cent in March 2022 to 30.8 per cent in March 2026, while stake in HDFC AMC rose from 10.4 per cent to 24.5 per cent. Holdings in Polycab India climbed from 5.8 per cent to 18.2 per cent. Among mid-caps, FPIs increased exposure to Max Healthcare from 14.6 per cent to 45.4 per cent, while holdings in One 97 Communications (Paytm) surged from 4.4 per cent to 24.3 per cent during the period. The trend was also visible in small- and micro-cap stocks. FPIs increased stake in TD Power Systems from 2.1 per cent to 26.7 per cent, while exposure to Home First Finance rose from 10.9 per cent to 45.7 per cent. “Foreign investors are increasingly positioning themselves in sectors linked to domestic growth, manufacturing, healthcare, industrials and financial services rather than maintaining concentrated bets on traditional index heavyweights,” ICICI Securities said. ## FPI selling in 2026 That said, FPIs remained net sellers in April 2026, pulling out ₹60,900 crore from Indian equities. Financials saw the highest selling at ₹30,900 crore, followed by consumer discretionary, healthcare, energy and auto sectors. So far in CY26, FPIs have withdrawn nearly $21.7 billion from Indian markets, extending the selling trend seen in CY25, when they pulled out $18.8 billion from equities. ### Related Stocks - [HDB.US](https://longbridge.com/en/quote/HDB.US.md) - [INFY.US](https://longbridge.com/en/quote/INFY.US.md) ## Related News & Research - [Sebi eases FPI compliance norms amid continued overseas equity outflows](https://longbridge.com/en/news/286580681.md) - [Ultra Mobile Goes Global with New Go Roam World Passes | TMUS Stock News](https://longbridge.com/en/news/287080245.md) - [Reliance Jio IPO: what’s behind the shift to a pure fundraise?](https://longbridge.com/en/news/285892724.md) - [Top 3 Real Estate Stocks You'll Regret Missing In Q2](https://longbridge.com/en/news/286404108.md) - [$1000 Invested In MasTec 10 Years Ago Would Be Worth This Much Today](https://longbridge.com/en/news/287120544.md)