Market analysts said foreign investors are betting on the Narendra Modi-led BJP government.
By: Press Trust of India
| New Delhi |
Published:June 1, 2014 11:57 am
Overseas investors pumped in nearly Rs 34,000 crore in the Indian market last month on hopes that the new government at the Centre would push reforms and spur economic growth.
As per data compiled by capital markets regulator Sebi, net investment by FIIs into Indian equities in May was Rs 14,006 crore (USD 2.35 billion), while in the debt markets it stood at Rs 19,772 crore (USD 3.34 billion) taking the total to Rs 33,778 crore (USD 5.7 billion).
Market analysts said foreign investors are betting on the Narendra Modi-led BJP government as they see it initiating reforms to spur economic growth on the back of clear majority it has won last month in the general elections.
Given the decisive political mandate, they believe that Indian markets have the potential to get more inflows.
FIIs, main drivers of the equity market, have helped push up the BSE 30-scrip index, Sensex, by over 8 per cent in May.
They had invested Rs 9,602 crore in Indian stocks in April, compared with Rs 20,077 crore in March, Rs 1,404 crore in February and Rs 714 crore in January.
Currently, there are 1,709 registered FIIs in the country, along with to 6,450 sub-accounts.
The strong inflows in the recent months have taken the net investment by FIIs to Rs 45,804 crore in Indian equities so far this year, and over Rs 46,000 crore in the debt market, taking the total to Rs 91,000 crore.