The recent rout in the share price of Facebook parent’s Meta Platforms on Thursday and the estimated $1-trillion loss in the market cap of big US tech giants this week have hit Indian investors quite hard.
Worse still, most of these stocks were already down between 30% and 70% since the beginning of the year. The latest crash would have put further pressure on the investors holding these stocks.
According to data from primemfdatabase.com, Indian mutual funds held stocks worth a little more than `1,100 crore in Meta at the end of September 2022. In total, the schemes had over `12,300 crore invested in top tech companies like Meta, Netflix, Alphabet, Amazon and Microsoft. These holdings would have taken a significant beating in the recent crash.
For example: Meta, alone, is down over 30% in the past month while Alphabet is down around 8%.
Several schemes have invested a substantial portion of their corpus in the technology stocks…