FII inflows cross $25 billion in July 2014

Net investments by foreign investors in the equity market totalled to USD 2.2 billion

Update: 2014-07-27 11:11 GMT
Switzerland is by no means the only tax haven in which Indians have salted away money. (Photo: PTI)

New Delhi: Betting big on the government’s reforms agenda, overseas investors have poured in more than USD 5 billion in the Indian market so far this month taking   the total inflow to over USD 25 billion since January.  

Net investments by foreign investors in the equity market were USD 2.2 billion (Rs 13,166 crore) from July 1-25, while   they amounted to USD 3 billion (Rs 17,829) in the debt market, taking the total to USD 5.2 billion (Rs 30,995 crore), as per the latest data. Market analysts maintain that foreign investors have been   betting on the Indian market mainly on account of the reforms agenda of the new government at the Centre.   Also, they anticipate that inflows would continue in the   coming months on slew of measures announced by the government.  

The Cabinet has given go-ahead to hiking the foreign   direct investment (FDI) cap in insurance to 49 per cent, paving way for inflow of as much as Rs 25,000 crore foreign   funds.   Besides, the FII limit for investment in government   securities has been hiked by USD 5 billion, within the total   cap of USD 30 billion.  

Also, the government may soon take a decision on easing   FDI in railways and defence sectors.   Since the beginning of the year, foreign investors have   made a net investment of USD 25.5 billion (Rs 1.53 lakh crore   into the country's securities market. This includes a net   investment of Rs 72,961 crore in equities and Rs 80,663 crore into debt market. From the beginning of June, FIIs (Foreign Institutional   Investors) along with sub-accounts and qualified foreign   investors have been clubbed together by market regulator Sebi to create a new investor category called Foreign Portfolio Investors.  

Strong inflows in the recent months have taken the cumulative net investments of foreign investors into India to   over USD 196 billion since 1991. In rupee terms, their   investments are at Rs 9.4 lakh crore level. 

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