The latest rout within the share value of Facebook dad or mum’s Meta Platforms on Thursday and the estimated $1-trillion loss available in the market cap of huge US tech giants this week have hit Indian traders fairly laborious.
Worse nonetheless, most of those shares had been already down between 30% and 70% because the starting of the yr. The newest crash would have put additional strain on the traders holding these shares.
According to knowledge from primemfdatabase.com, Indian mutual funds held shares price slightly greater than `1,100 crore in Meta on the finish of September 2022. In whole, the schemes had over `12,300 crore invested in high tech firms like Meta, Netflix, Alphabet, Amazon and Microsoft. These holdings would have taken a major beating within the latest crash.
For instance: Meta, alone, is down over 30% prior to now month whereas Alphabet is down round 8%.
Several schemes have invested a considerable portion of their corpus within the expertise shares given their excessive weighting in indices similar to Nasdaq 100 and NYSE FANG. Tech shares account for over 25% weighting within the S&P 500 index as properly.
That’s not all. Indians despatched $19.6 billion overseas in FY22 as per the RBI knowledge, of which funding in fairness/debt comprised $747 million. Of this, $300 million would have made its approach into shares and ETFs, with 40% or extra being invested into expertise shares, business estimates recommend.
FE
