As India-Canada diplomatic tensions rise, Canadian equity investments in Indian markets have raised concerns. The Canada Pension Plan Investment Board (CPPIB), which invests money from the Canada Pension Plan (CPP) to generate income, has extensive investments in Indian companies. These include new-age companies such as Acko and Zomato, as well as legacy companies such as Kotak Mahindra Bank, ICICI Bank, Infosys, Wipro, and several others.

Several CPPIB-owned stocks have been dragged down by the tension between India and Canada. On September 21, 2023, CPPIB portfolio stocks including Kotak Mahindra Bank, Zomato, Nykaa, and Indus Towers fell as much as 2.4 percent. Delhivery, on the other hand, was in green, up 0.5 percent.

However, experts believe that the clash of the countries will not panic investors.

“As tensions between Canada and India continue to rise, the Indian market will be indirectly affected. Though Canadian pension funds such as CPPIB and CDPQ are the largest institutional investors in Indian projects, India”s economic system stands strong,” Moneycontrol reported, quoting Jayden Ong, Senior Market Analyst, APAC, Vantage.

According to data from National Securities Depository Limited (NSDL), foreign investments into India from Canada rank among the top 10. Canadian foreign institutional investors (FIIs) hold around Rs 46,306 crore worth of Indian equities, data showed.

Stock-wise, CPPIB holds a 2.68 percent stake in Kotak Mahindra Bank, 2.3 percent in Zomato, 1.47 percent in Nykaa, 2.18 percent in Indus Towers, and 6 percent in Delhivery.