With overseas investors pumping in over Rs 4,000 crore in the Indian capital markets so far this month, total foreign fund inflows have reached Rs 83,000 crore since the beginning of the year.
Analysts expect the inflows to accelerate further in view of clearance of reform bills for insurance, coal and mining, as also on assurances on controversial issues like General Anti Avoidance Rules (GAAR).
Foreign Portfolio Investors (FPIs) have bought shares worth Rs 2,984 crore till April 17 this month, while they infused Rs 1,043 crore in the debt markets, taking their net investment to Rs 4,027 crore (USD 645 million), as per the data compiled by Central Depository Services Ltd.
This has taken their total net investment in the country’s capital markets (equity and debt segments) so far in 2015 to Rs 83,002 crore (about USD 13.4 billion).
Market participants attributed the robust inflows to positive investor sentiment driven by several reform measures announcement by the government.
Finance Minister Arun Jaitley announced a slew of measures to attract overseas investment in the country in the his Budget for 2015-16.
Besides, he has deferred the controversial GAAR by two years to soothe investors’ nerves, saying its immediate applicability can create “panic” in markets.
The net inflows by overseas investors in debt markets stood at Rs 1.59 lakh crore in last year 2014, while the same for equities was Rs 97,054 crore.
Overall, the net investment by foreign investors stood at Rs 2.56 lakh crore last year.