Amid hopes of a stable and reform oriented government after general elections, net investments by foreign institutional investors into India so far this year has reached USD 10-billion level, while their cumulative total inflows into the country is nearing USD 200-billion mark.
According to the latest data compiled by capital markets regulator SEBI, the net investments by FIIs into Indian equity markets since the beginning of 2014 have crossed USD 5 billion over Rs. 30,000 crore), while the same for debt markets also stands near USD 5 billion (about Rs. 29,000 crore)– taking the total to close to Rs. 60,000 crore.
This includes net investments of about Rs. 1,500 crore so far in April. This is despite a net outflow of about Rs. 7,000 crore from debt markets, as equity markets have seen a net inflow of over Rs. 8,500 crore this month till April 25, the latest trading session.
According to market analysts, FIIs are bullish on India and they are expecting a stable government emerging post-elections.
FIIs, the main driver of the equity market, have helped pushed up the benchmark BSE Sensex by over 7 per cent so far in 2014 and is now being seen as moving closer to 23,000 mark.
They invested Rs. 20,077 crore in Indian stocks in March, compared with Rs. 1,404 crore in February and Rs. 714 crore in January.
There were over 1,700 registered FIIs in the country, along with close to 6,400 sub-accounts.
The strong inflows in the recent months have taken the cumulative net investments of FIIs into India to close to USD 197 billion, while their investments in rupee terms is a bit away from Rs 10 lakh crore level.
This is based on the data since November 1992 when the FIIs began investing into Indian markets and includes about USD 167 billion investments into equities and further about USD 30 billion in debt markets.