Continuing to bet big on the reform agenda of Narendra Modi-led government, overseas investors have poured in nearly Rs 17,000 crore in the Indian markets since the beginning of the month.
Net investments by foreign investors in equity market stood at Rs 7,505 crore (USD 1.25 billion) till July 11. Net inflow for the debt market was Rs 9,286 crore (USD 1.55 billion), taking the total amount to Rs 16,791 crore (USD 2.8 billion), shows the latest data.
Market analysts believe that foreign investors have been betting on the Indian market mainly on reform agenda of the new government at Centre.
Also, they anticipate that inflows would continue in the coming months as Finance Minister Arun Jaitley has announced several measures in Budget to enthuse investors.
“From a stock market perspective, the investment push in the budget both directly via government spending as well as tax cuts together with higher FDI limits in insurance and defence and a bunch of steps to ease taxation should augur well…,” US financial services major Morgan Stanley said in a note.
Since the beginning of the year, foreign investors have made a net investment of Rs 1.4 lakh crore (about USD 23 billion) into the country’s securities market. This includes a net investment of Rs 67,300 in equities and Rs 72,120 crore into debt market.
From the beginning of June, FIIs (Foreign Institutional Investors) along with sub-accounts and qualified foreign investors have been clubbed together by market regulator Sebi to create a new investor category called Foreign Portfolio Investors.
The strong inflows in the recent months have taken the cumulative net investments of foreign investors into India to to USD 194 billion. In rupee terms, their investments are at Rs 9.3 lakh crore level.
This is based on the data since November 1992 when foreign investors began investing into Indian markets and includes about USD 157 billion investments into equities and about USD 37 billion in debt markets.