NEW DELHI: Overseas investors continued to show good appetite for Indian bonds and pumped in a little over Rs 3,700 crore in such markets in the New Year.

The latest inflow comes following a net investment of Rs 45,856 crore (USD 7.4 billion) by them in the debt markets in 2015.

According to data available with depositories, Foreign Portfolio Investors (FPIs) infused a net amount of Rs 3,706 crore (USD 554 million) into the debt markets during January 1-8.

However, FPIs pulled out Rs 493 crore from equity markets, still leaving behind an investment of Rs 3,214 crore during the period.

Capital poured in by the FPIs is often referred to as 'hot money' because of its unpredictability, although they continue to remain among the most important drivers of Indian stock markets.

Market experts attributed inflows in the debt markets to relative stability of the rupee compared with other currencies.

In addition, price of crude oil is expected to stay below USD 50 a barrel and the current account deficit is in control, the outlook for the currency is also positive, they added.

While, overseas investors withdrew money from the equity markets on concerns over the health of Chinese economy.

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