Foreign fund flows to Indian capital markets in 2015 near $13 bn

Overseas investors have pumped in over $3 billion in the Indian capital markets this month, to take total foreign fund inflows to nearly $13 billion since January this year.

Foreign portfolio investors (FPIs) have bought equity shares worth Rs11,813 crore ($1.9 billion) from 2 to 27 March while the debt market saw inflows of Rs8,912 crore ($1.43 billion), taking the total to Rs20,725 crore ($3.33 billion), as per the data compiled by Central Depository Services Ltd.
 
Taken together, the inflows of foreign investment in the country's capital markets (equity and debt segments) have gone up to Rs79,000 crore (about $12.75 billion) so far this year.
 
Against this, net foreign inflows into India's equity markets stood at Rs97,054 crore in the whole of 2014 while overseas investments in the debt market stood at Rs1,59,000 crore during the year. Overall net investment by foreign investors in 2014 stood at Rs2,56,000 crore last year.

Foreign fund inflows are expected to get a further boost once Parliament approves some key legislation related to insurance, coal allocation and mining and the finance ministry follows up Budget assurances on a review of the controversial General Anti-Avoidance Rule.
 
Market participants attributed the robust inflows to positive investor sentiment driven by the measures announced by finance minister Arun Jaitley to attract overseas investment in the country in the recent Union Budget.