FIIs pump in Rs 22,000 cr in July, bet on Modi govt's reforms agenda

New Delhi: Continuing to bet on the reforms agenda of the government, overseas investors have poured in a little over Rs 22,000 crore in the Indian markets since the beginning of the month.

The net investments by foreign investors in equity market stood at Rs 10,755 crore ($1.8 billion) till July 19, while for the debt market it was at Rs 11,268 crore ($1.89 billion), taking the total amount to Rs 22,023 crore ($3.67billion), according to the latest data.

[caption id=“attachment_86713” align=“alignleft” width=“380”]  Representational image. Reuters[/caption]

Market analysts believe that foreign investors have been betting on the Indian market mainly on reform agenda of the new government at the Centre.

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Also, they anticipate that inflows would continue in the coming months as Finance Minister Arun Jaitley has announced several measures in Budget 2014-15 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 1.45 lakh crore (about $24 billion) into the country’s securities market. This includes a net investment of Rs 70,550 crore in equities and Rs 74,000 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 $195 billion. In rupee terms, their investments are at Rs 9.35 lakh crore level.

PTI