Driven by an investment friendly government at the centre, overseas investors have pumped in a staggering USD 6 billion into the Indian securities market in July — taking their overall net inflows since beginning of 2014 to more than USD 26 billion.
Foreign investors have poured in USD 2.18 billion (Rs 13,124 crore) into the equity markets, while they have made net investments worth USD 3.83 billion (Rs 22,977.65 crore) in debt securities, during July — the highest inflow for a month so far this year, latest market data showed.
With the July figures, the net inflows of overseas funds into Indian capital markets in 2014 had reached about USD 26.4 billion (about Rs 1.59 lakh crore).
However, on Friday (August 1), overseas investors pulled out securities worth about USD 240.5 million from the market, taking down the net investment by them to USD 26.16 billion (Rs 1.57 lakh crore) for this year.
As on August 1, investments totalling USD 11.9 billion (Rs 71,408 crore) have come into equities, while debt markets account for USD 14.25 billion (Rs 85,873 crore) worth inflows.
Market analysts felt that foreign investors have been betting big on the Indian market mainly on account of a stable and reforms-oriented government at the centre.
FIIs (Foreign institutional Investors), the main driver of the equity market, have helped in pushing up the benchmark BSE Sensex by over 20 per cent so far in 2014.
Foreign investors have purchased securities worth Rs 8.30 lakh crore while their gross sales have amounted to 6.73 lakh crore, till August 1.
Within July, FIIs have made gross purchases worth Rs 1.30 lakh crore, while they have sold equity and debt securities worth about Rs 94,647.5 crore, resulting into net inflows of Rs 36,101.5 crore (USD 6 billion).