Foreign investors have poured almost Rs. 11,000 crore into the Indian debt market so far this month after being net sellers of bonds in 2013. The inflows followed a net investment of Rs. 12,609 crore in the preceding month.
According to market experts, FII inflows into debt are returning on account of the stability observed in foreign exchange and interest rates.
Foreign institutional investors (FIIs) were gross buyers of debt securities worth Rs. 21,210 crore and sellers of bonds to the tune of Rs. 10,219 crore till February 21, resulting in a net inflow of Rs. 10,991 crore ($1.77 billion), according to data from the Securities and Exchange Board of India.
During this period, FIIs pulled out Rs. 549 crore from the equity market.
In 2013, overseas investors withdrew Rs. 50,847 crore ($8 billion) from the bond market and infused Rs. 1.13 lakh crore ($20.1 billion) in equities.