- Nvidia's share price drop impacted Indian mutual funds across asset classes and equities
- Motilal Oswal Nasdaq 100 ETF held the largest Nvidia stake among Indian mutual funds in Sept
- Concerns arose from CEO Huang's alleged links to a Singapore woman linked to Chinese intelligence
Nvidia's sharp share price decline has put the spotlight on Indian mutual funds holding the US chipmaker, with exposure extending beyond overseas technology funds to schemes investing across asset classes and domestic equities.
Motilal Oswal Nasdaq 100 ETF held 7.22 lakh Nvidia shares as of September, the highest holding among the individual Indian mutual fund schemes, according to Bloomberg data. Motilal Oswal S&P 500 Index Fund held another 548,267 shares. Other schemes with exposure include those managed by Mirae Asset, ICICI Prudential, DSP, Axis, Edelweiss, Franklin Templeton and Aditya Birla Sun Life, Bloomberg data showed.
The holdings come into focus as Nvidia faced a potential $470 billion erosion in market capitalisation over two trading sessions. Its shares have fallen amid concerns surrounding Chief Executive Officer Jensen Huang's alleged links with a Singapore-based businesswoman suspected of having connections with Chinese intelligence. Questions have also emerged over the movement of Nvidia chips to Chinese firms.
ALSO READ | $470,000,000,000 Wealth Wipeout: NVIDIA's China Spy Controversy Deepens As Shares Extend Losses
Fund Exposure
Nvidia features in portfolios beyond funds dedicated to overseas technology investments. Bloomberg data shows holdings in DSP Value Fund, Axis Large & Mid Cap Fund and ICICI Prudential US Bluechip Equity Fund, among other schemes.
ALSO READ | Nvidia Dethroned On CEO Probe: Microsoft Tops Chipmaker As World's Second-Most Valuable Firm
Who's Buying, Who's Selling
Motilal Oswal Nasdaq 100 ETF reduced its holding by 13,135 shares, while its S&P 500 Index Fund cut its position by 12,038 shares, Bloomberg data showed, citing their filings as of September.
Mirae Asset's NYSE FANG+ ETF added 4,322 shares, while its S&P 500 Top 50 ETF increased its holding by 4,442 shares. ICICI Prudential Nasdaq 100 Index Fund added 6,250 shares.
DSP Multi Asset Allocation Fund and DSP Value Fund each recorded an addition of 10,591 shares in the latest change column.
ICICI Prudential US Bluechip Equity Fund held 142,917 shares, according to its October filings, Bloomberg data showed. Axis Large & Mid Cap Fund and Axis Innovation Fund held 62,258 and 53,052 shares, respectively, while Edelweiss Technology Fund held 19,871 shares.
ALSO READ | How Did Jensen Huang Meet The Alleged Chinese Spy Alice? Viral AI-Generated Trailer Imagines 'First Meeting'
China Concerns
Nvidia shares closed at $168.89 on Nov. 10, down $9.78, or 5.5%, from the previous close of $178.67. The stock had closed at $186.64 on Nov. 6.
The concerns stemmed from the reports about Huang's alleged relationship with Singapore-based businesswoman Alice Huang, who has been accused of having links with Chinese intelligence. Reports have also raised questions about the movement of Nvidia chips to Chinese firms.
Nvidia's board has appointed an independent investigator to examine the allegations, while US lawmakers have sought briefings from Huang. The company has said it has no reason to believe that US national security or its business secrets have been compromised.
The latest decline has also pushed Nvidia below Microsoft in the global market capitalisation rankings, making the software company the world's second-most valuable company.
Nvidia's quarterly results are scheduled for Nov. 17.
ALSO READ | Jeff Bezos To Jensen Huang: Five Scandals When CEOs' Private Lives Become A Corporate Risk
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.