Foreign portfolio investor

An overseas investor registered to buy Indian listed securities, and historically the largest marginal buyer in the Indian market.

Their aggregate daily buying and selling is published, and the flow has a well-observed relationship with short-term index movements, particularly in periods when the dollar is strong and emerging-market allocations are being reduced.

For a single company, the position matters more than the flow. A high foreign holding indicates institutional scrutiny has taken place and creates a specific risk: those holders sell for portfolio reasons unrelated to the business, and a small-float company can fall a long way when they do.

Flows are noise on any horizon that matters. Positions are information.