Foreign stake in Nifty50 firms has witnessed a steep fall, reported the Financial Express, citing an IDBI Capital study. More than half of the Nifty50 companies saw a decline in foreign ownership after share of foreign portfolio investors fell from 25.9 percent to 25.6 percent in the September quarter.

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As per the report, Yes Bank and Tata Motors recorded the highest rate of decline followed by ICICI Bank, HDFC, and Gail India. On the other hand, firms such as Zee Entertainment Enterprises, Hero MotoCorp, UPL, IndusInd Bank, and NTPC saw a rise in foreign holdings.

During the September quarter, foreign portfolio investors (FPIs) sold nearly $3 billion worth of Indian equities, said the Financial Express report. However, the quarter also saw a considerable volume of FPI inflows unlike previous two quarters which were characterized by outflows from equities, the report added.

The change in the mood is owing to the renewed optimism post the corporate tax cut announced by the Union government in September, the report posits. The government slashed its headline corporate tax rate to 22 percent from 30 percent earlier in a surprise gambit aimed at wooing manufacturers and boosting investment in the country in a bid to stimulate the flagging economy.