India Canada News, Reliance, Infosys, TCS, Kotak, Mahindra… India is golden goose for canadian funds no rush to sell their rs 2 lakh crore investment

by times news cr

New Delhi: Despite increasing diplomatic tensions between Canada and India, Canadian funds are in no hurry to leave. According to the data till September 30, the value of investment of Canadian pension funds in Indian domestic funds is about ₹1.98 lakh crore. The largest Canadian investor in India is the Canada Pension Plan Investment Board (CPPIB). It has been reducing its stake in Indian stocks for the last one year. Meanwhile, other funds such as Casse de Depot et Placement du Quebec (CDPQ) and British Columbia Investment Management have kept their stakes unchanged. CPPIB had assets worth ₹45,000 crore ($5.46 billion) as of March 31. Had listed shares. It has sold shares worth ₹8,500 crore ($1 billion) so far this fiscal year. Analysts said the sales by some of these funds were not due to diplomatic tensions between the two countries. This could be due to high valuation of Indian stocks or reshuffle in their underperforming holdings.

In which companies do you have stake?

VK Vijayakumar, chief investment strategist, Geojit Financial Services, said, “Until diplomatic relations between the two countries are completely severed and their governments do not take drastic measures, foreign funds like CPPIB will continue to invest in India.” As of June 2024, CPPIB held more than 1% stake in five listed Indian companies. Many companies have not yet disclosed their latest shareholding pattern.

The fund’s largest investment in India was in Kotak Mahindra Bank, where it held 2.68% stake in the bank till March 2024. In June it sold about 3.3 crore shares or 1.6% stake in the bank for ₹6,123 crore through open market transactions. In July, CPPIB sold 0.52% stake in Nykaa for ₹256 crore and 3.18% stake in Delhivery for ₹910 crore. Earlier in February, CPPIB had sold 2% stake in telecom tower infrastructure service provider Indus Tower for ₹1,223 crore.

Alphaniti co-founder UR Bhat said, ‘India is the fastest growing economy in the world. Given this, Canadian funds are unlikely to sell their stakes in India in a hurry. Most of these funds are pension funds and longtime investors. Therefore they are unlikely to change their investment strategies based on short-term events.

stake in hundreds of companies

CPPIB had a stake in about 139 shares worth $5.46 billion as of March 31, 2024, according to Refinitiv Data. As of March 31, 2024, he held 11.61 million shares of Reliance Industries, worth $414 million. His other big investments include 21.58 million shares of Infosys, 149 million shares of Zomato, 6.11 million shares of Tata Consultancy Services.

The assets under management of the 216 stocks in which CDPQ has invested in India are Rs 2.3 billion as of March 2024. There has been an increase of 91 million dollars in one year. Some of its biggest investments include HDFC Bank, ICICI Bank, Infosys, Tata Consultancy Services, Axis Bank, Adani Enterprises, Mahindra & Mahindra etc. In recent years, CPPIB and many other pension funds have opened their offices in Mumbai or New Delhi.

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