FIIs pump $2.2 bn into India in 20 days of December alone

Overseas investors have poured over Rs14,000 crore ($2.2 billion) into the Indian capital market so far this month, taking total inflows to Rs2,60,000 crore this year.

Net foreign investments in equities stood at Rs3,430 crore ($570 million) during 1-19 December, while total inflows in the debt market during the same period were Rs10,808 crore ($1.75 billion), taking the total to Rs14,239 crore, the latest data showed.

Market analysts maintain that foreign institutional investors (FIIs), which got rechristened as foreign portfolio investors or FPIs, have been betting on the Indian market, mainly on account of the reforms agenda of the central government.

Moreover, foreign investors are pumping funds into debt in order to take advantage of the higher yields.

Net investment by overseas investors in the equity market has reached Rs99,450 crore ($16.5 billion) so far this year, while in the debt markets, it is at Rs1,59,000 crore ($26.2 billion), aggregating to Rs2,60,000 crore ($42.6 billion).

This has taken their cumulative net investments into the Indian equity markets, since being allowed over two decades ago in November 1992, to nearly Rs8,00,000 crore.

The cumulative figure for debt securities has also grown to Rs2.63 lakh crore, taking the total for overall Indian markets to Rs10,50,000 crore (over $213 billion).