FIIs inflow touches new high at Rs 1.47 lakh cr

The net > FII (foreign institutional investors) investments in rupee terms have touched a record high in the current fiscal, so far, with more foreign money finding its way into India’s equity markets.

As on February 18, FIIs poured in Rs 1,47,268.2 crore into the Indian markets on net terms (inflow minus outflow). This is higher than Rs 1,46,438.1 crore that was invested in FY 2010-11.

Interestingly, bulk of FII investments have come since December, 2012, after the Government announced a slew of ‘reform’ measures.

Since December 1, 2012, FIIs have brought in 50 per cent (Rs 74,059.6 crore) of the total inflows in this fiscal.

Also, FIIs invested a lion’s share of their funds into Indian equities.

They have invested Rs 1,27,896.9 crore in equities, so far. Unless there is a significant reversal in the remaining period of the current fiscal, FII investments in the country could be the highest since liberalisation.

However, India’s debt markets have not found favour with the FIIs. They have poured in a mere Rs 19,371.2 crore (about $3.5 billion) in debt instruments in the current financial year, despite the RBI increasing the FII limit in debt instruments to $75 billion.

The current year’s investment in debt is about 61 per cent lower than what it was in FY 2012.

> satyanarayan.iyer@thehindu.co.in