The INSTANEX FII INDEX tracks the price performance of the portfolio of listed Indian equity shares owned by foreign institutional investors (FIIs). The Index comprises the top 15 companies by value of FII holdings subject to (a) Stock future listed in India, (b) Restriction of company weight to 20%, industry to 30% and principal shareholder to 30%. Index weights are based on adjusted market value of holdings. The Index is adjusted for all corporate actions, including bonus, split and rights. Reviews are conducted quarterly and companies are deleted from the Index if they are not among the top 20 FII holdings. The base date is September 30, 2003 (=100). (This was till March 2009. Changes thereafter if any are unavailable).
The Index has been developed by and is owned by Instanex Capital Consultants Pvt. Ltd., Mumbai, India.
The Index has been developed by and is owned by Instanex Capital Consultants Pvt. Ltd., Mumbai, India.
The Instanex FII index tracks the 15 stocks in which FII funds have been invested. These stocks account for 55 per cent of the market cap of the FII holdings in India.
Since FII are the most successful investors in India and their investments and disinvestments (Inflows and outflows) also determine the direction of Indian stock market.
“The index is for those investors who want to replicate what the FIIs do in the market” says Mr Gautam Chand, chairman and Ceo, Instanex Capital Consultants Pvt Ltd.
The FIIs, according to Instanex Capital statistics, have outperformed the DDIs (Domestic Institutions Investors) by over 10 per cent in the last five years. Earlier, they used to outperform the DIIs by three per cent annually but because 2008 was a bad year, the average has come down. The FIIs have also outperformed the corporate investors.. (views dependent on data available as on March 2009). The data also suggests that the FIIs have pretty concentrated investment into Indian equities.
