FIIs pump in Rs 9,000 crore in the first week of September

New Delhi: Continuing their bet on the government's reforms agenda, overseas investors have poured in  nearly Rs 9,000 crore in the Indian capital market in the  first week of the month.  Net investments by foreign investors in the equity market  were Rs 3,972 crore (USD 656 million) from September 1-5,  while they infused a net amount of Rs 5,013 crore (USD 828  million) in the debt market during the period, taking the  total to Rs 8,986 crore (USD 1.5 billion), as per the latest  data.  Market analysts maintain that overseas investors (foreign Institutional Investors, sub-accounts or foreign portfolio  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.  Since the beginning of the year, foreign investors have  made a net investment of Rs 1.9 lakh crore (USD 31.5 billion)  into the country's securities market.

This includes a net  investment of Rs 82,307 crore in equities and Rs 1.07 lakh  crore into debt market.  FIIs, the main driver of the equity market, have helped  push up the benchmark BSE Sensex by 1.45 per cent last week  and is now moving above 27,000 level.  The strong inflows in the recent months have taken the  cumulative net investments of FIIs into India to USD 202  billion, while their investments in rupee terms is Rs 9.8 lakh  crore. 

This is based on the data since November 1992 when the  FIIs began investing into Indian markets and includes about  USD 160 billion investments into equities and further about  USD 41 billion in debt markets.  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.