Foreign Fund Inflows Cross 83,000 Cr This Year


NEW DELHI: With overseas investors pumping in over 4, 000crore in the Indian capital markets so far this month, total foreign fund inflows have reached 83,000crore since the beginning of the year.

Analysts expect the inflows to accelerate further in view of clearance of reform bills for insurance, coal and mining, as also on assurances on controversial issues like General Anti-Avoidance Rules (GAAR).

Foreign portfolio investors (FPIs) have bought shares worth 2, 984crore till April 17 this month, while they infused 1,043crore in the debt markets, taking their net investment to 4,027crore ($645 million), as per the data compiled by Central Depository Services Ltd.

This has taken their total net investment in the country's capital markets (equity and debt segments) so far in 2015 to 83, 002crore (about $13.4 billion).

Market participants attributed the robust inflows to positive investor sentiment driven by several reform measures announcement by the government.

Finance minister Arun Jaitley announced a slew of measures to attract overseas investment in the country in his Budget for 2015-16.

Besides, he has deferred the controversial GAAR by two years to soothe investors' nerves, saying its immediate applicability can create "panic" in markets.

The net inflows by overseas investors in debt markets stood at 1.59lakh crore in last year 2014, while the same for equities was 97, 054crore.

Overall, the net investment by foreign investors stood at 2.56 lakh crore last year.

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Source: PTI