Amid the diplomatic ruptures between India and Canada, analysts at Dalal Street are carefully combing through data to assess the possible impact of further deterioration in relations on Indian equites.
At the centre of their analysis are the Canadian pension funds which hold nearly Rs 2 lakh crore of Indian equities.
The Canada Pension Plan Investment Board (CPPIB) – the largest investor in India has been trimming its stake in Indian equities over the last one year. The fund held Rs 45,000 crore of equities as of March 31 and reports claim that it has already sold about Rs 8,500 crore worth of stocks so far this year.
Analysts downplay the selloff. They say that the dilution in holdings could be more to profit off the high share valuations in India rather than be a result of the bitter exchanges between the political leaders of the two countries.
V K Vijaykumar, Chief Investment Strategist, Geojit Financial Services told news…
