Norway’s Government Pension Fund Global, the largest sovereign wealth fund in the world with a portfolio value exceeding $1.2 trillion, increased its investments in India last year despite the volatility in Indian equities.
The fund’s holdings in Indian companies grew to 550 in CY24 from 449 in the previous year, with a total value of $30.8 billion at the end of the year, marking a 28% increase from the previous year. The fund’s India equity investments as a percentage of its total equity portfolio also rose by 30 basis points year-on-year in 2024, reaching 2.47%.
This increase in India exposure occurred during a year when foreign portfolio investors (FPIs) were selling Indian shares worth over ₹3 lakh crore in the cash market, even as India’s benchmark index Nifty 50 rose by 8.7%.
The fund’s top Indian holdings include HDFC Bank, valued at over $2 billion, followed by Reliance Industries with a market value of over $1.5 billion. Other significant holdings include ICICI Bank, Bharti Airtel, and Infosys, each valued at over $1 billion. The fund’s ownership in HDFC Bank and Reliance Industries increased by 33 bps and 32 bps, respectively.
Financials is the largest sector in the fund’s portfolio, with a market value of $9.2 billion, followed by consumer companies at $5.6 billion and technology companies at $3.5 billion. The fund’s China equity investments stood at $40.69 billion at the end of December.
India has the second largest weight in the MSCI EM index, accounting for 19.4% compared to China’s 27.8%. Experts predict that India’s equity market could double in size within the next five to six years, reaching a projected market capitalization of $10 trillion.
Equities make up 71.4% of the fund’s total investments, with its equity portfolio returning 12.5% in the first half of 2024. The fund holds ownership shares in approximately 9,000 companies worldwide, representing an average of 1.5% ownership in all listed companies.
Published on February 6, 2025.
