Overseas investors have poured in over Rs 14,000 crore in the Indian capital markets this month so far, taking total inflows to a staggering Rs 2.6 lakh crore this year.
The net investment by foreign investors into equities stood at Rs 3,430 crore (570 million) during December 1-19, while total inflows in the debt market during the same period were Rs 10,808 crore (1.75 billion), taking the total to Rs 14,239 crore (USD 2.3 billion), as per latest data.
Market analysts maintain that FIIs or Foreign Institutional Investors, which got re-christened as FPIs, or Foreign Portfolio Investors, have been betting on the Indian markets, mainly on account of the reforms agenda of the central government.
Moreover, foreign investors are pumping funds into debt in order to take advantage of the higher yields.
“Most foreign investors are finding India a far better choice that can generate returns in both short and long term,” Ladderup Wealth Management’s Managing Director Raghvendra Nath said.
The net investment by overseas investors into the equity market has reached Rs 99,450 crore (USD 16.5 billion) so far this year, while in the debt markets it is at Rs 1.59 lakh crore (USD 26.2 billion), aggregating to Rs 2.6 lakh crore (USD 42.6 billion).
This has taken their cumulative net investments into the Indian equity markets, since being allowed over two decades ago in November 1992, to nearly Rs 8 lakh crore.
The cumulative figure for debt securities has also grown to Rs 2.63 lakh crore — taking the total for overall Indian markets to Rs 10.5 lakh crore (over USD 213 billion).