NEW DELHI – With an average of over 1,000 crore a day, the net foreign fund inflows into Indian capital markets have crossed USD 11 billion (over 68,000 crore) in little over two months so far in 2015.
The analysts expect the inflows to further accelerate going ahead, following assurances in the Union Budget to revisit controversial issues like GAAR (General Anti Avoidance Rule).
The Foreign portfolio investors (FPIs) have bought shares worth a net amount of 31,256 crore till March 5 this year, while in the debt segment, their net inflows stand at 37,296 crore, taking the total to 68,552 crore (USD 11.08 billion), as per the data compiled by the Central Depository Services Ltd (CDSL).
Overseas investors witnessed a net inflow of 24,563 crore February, while the same in the previous month January stood at 33,688 crore.
FIIs (Foreign Institutional Investors) were rechristened as FPIs last year under a new regulatory regime that has made it easier for them to invest in India.
Market participants attributed the robust inflows to positive investor sentiment driven by the government’s announcement of several reform measures in recent months and expectations of more announcements in the Union Budget.
They further said that inflow will continue in the coming months, as Finance Minister Arun Jaitley announced a slew of measures to attract overseas investment in the country in his Union Budget.
