Overseas Investors Pour In Over Rs 20,000 Crore In Indian Market

Influenced by the reform agenda of the Narendra Modi government, Foreign Institutional Investors (FIIs) have pumped in a whopping Rs 20,000+ crore in the Indian capital market since September.

As per the latest official data, net investments by FIIs in the equity market were Rs 5,117 crore ($848 million) from September 1 to 26, while they infused a net amount of Rs 15,308 crore ($2.5 billion) in the debt market during the period, taking the total to Rs 20,425 crore ($3.4 billion).

Market analysts anticipate that inflows would continue in the coming months on a slew of measures announced by the government--opening up the retail sector to foreign players, deregulation of diesel prices and a gas pricing formula, and speedy auctions for de-allocated coal mines among others.

Since January 2014, overseas investors have made a net investment of over Rs 2 lakh crore ($33 billion) into the country's securities market, which includes a net investment of over Rs 83,000 crore in equities and Rs 1.2 lakh crore in debt markets.

On the basis of strong inflows in the recent months, the cumulative net investments by foreign investors into India escalated to $204 billion, or Rs 9.92 lakh crore. This has happed for the first time since 1992, the year when the FIIs began investing into Indian markets.
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