Markets

Foreign fund inflows touch $12.75 bn so far this year

PTI New Delhi | Updated on January 24, 2018 Published on March 29, 2015

With overseas investors pumping in over $3 billion in the Indian capital markets this month, total foreign fund inflows have touched nearly $13 billion since the beginning of the year.

Analysts expect the inflows to accelerate further in view of Parliament clearing the Bills related to insurance, coal allocation and mining as well as assurances in the Budget to revisit controversial issues like General Anti-Avoidance Rule.

Foreign Portfolio Investors (FPIs) have bought shares worth Rs 11,813 crore ($1.9 billion) from March 2-27. In the debt segment, the net inflows were Rs 8,912 crore ($1.43 billion), taking the total to Rs 20,725 crore ($3.33 billion), as per the data compiled by Central Depository Services Ltd.

The inflows have taken the foreign investment level in the country’s capital markets (equity and debt segments) to Rs 79,000 crore (about $12.75 billion) so far this year.

Market participants attributed the robust inflows to positive investor sentiment driven by the government’s announcement of several reform measures.

Besides, the Finance Minister, Arun Jaitley, had announced a slew of measures to attract overseas investment in the country in the recent Union Budget.

In 2014, the net inflows by overseas investors in debt markets was Rs 1.59 lakh crore, and Rs 97,054 crore in equities. Overall net investment by foreign investors stood at Rs 2.56 lakh crore last year.

To soothe investors’ nerves, Jaitley had deferred the controversial GAAR by two years, saying that its immediate applicability can create ‘panic’ in markets.

Published on March 29, 2015
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