Canada slips to 8th spot in India's FPI list, assets under custody up

In the backdrop of persistent tense India-Canada diplomatic ties, Canada slipped to eighth spot on India's country-wise FPI asset under custody (AUC) list at the end of September from seventh spot at the end of August. This is even as Canada-based FPIs managed Rs 1,52,455 crore worth of domestic equities in September against Rs 1,50,871 crore in August, data compiled from depository NSDL suggested.  

The BSE benchmark Sensex had climbed 1.55 per cent in September and the BSE listed stocks together added Rs 9.47 lakh crore in market capitalisation. This was the month when the Canadian PM Justin Trudeau raised issue of India's 'potential' role in the killing of a Khalistani separatist. The tensions between the two democracies have been flared up ever since, with India halting visa services for Canadian citizens  and recently asking Canada to cut strength of its diplomats in the country by 41.   

Norway FPIs took the seventh spot with FPI equity assets of Rs 1,76,447 crore against Rs 1,69,848 crore on month-on-month basis. Total domestic equity assets that FPIs in top 10 countries managed rose to Rs 54,08,654 crore from Rs 53,28,349 crore MoM.

US-based FPIs remained India's top foreign investors at Rs 22,76,616 crore, followed by Singapore (Rs 3,93,165), Luxemburg (Rs 3,97,671 crore) and Mauritius (Rs 2,98,412 crore).

The bilateral trade between the two nations equal $8 billion annually. While a proposed early-stage trade India-Canada deal was stalled by Canada, there were no immediate areas of concern for Indian IT industry, the apex IT body Nasscom said recently. 

Data showed FPIs are net sellers to the tune of Rs 7,727 crore in October so far against an outflow of Rs 14,768 crore in September. The institutional category has invested Rs 1,12,792 crore in domestic equities so far in 2023.

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