Overseas investors have pumped in about Rs. 13,000 crore in the Indian debt market so far this month, endorsing the country’s growth potential and political stability.
This takes the total investment in the debt market to around Rs. 99,000 crore so far this year.
Foreign investors were gross buyers of debt securities worth Rs. 31,639 crore till August 22, and sellers to the tune of Rs. 18,649 crore – a net inflow of Rs. 12,990 crore (USD 2.14 billion), as per latest data.
The country’s debt market has seen a recent surge in foreign buying especially last week after pulling out money in the first fortnight of August.
Moreover, foreign investors had poured in Rs. 16,072 crore (USD 2.65 billion) in a single day (August 20) in the debt market.
According to market analysts, foreign investors believe that the new government would bring several reform measures to pep up the sluggish economy.
Foreign investors have pumped in a staggering Rs. 98,802 crore (USD 12.76 billion) into the Indian bond market so far this year, higher than investments of Rs. 76,705 crore (USD 16.4 billion) into equities during the period.
The different overseas investors operating in Indian markets include FIIs (Foreign Institutional Investors), FPIs (Foreign Portfolio Investors) and QFIs (Qualified Foreign Investors).
From the beginning of June, FIIs along with sub-accounts and qualified foreign investors have been clubbed together by market regulator Sebi to create a new investor category called FPIs.