FIIs pour in Rs 13,000 cr in Indian bond market in Aug

Overseas investors have pumped in about Rs 13,000 crore in the Indian debt market so far this month, endorsing the country's growth potential and political stability.

This takes the total investment in the debt market to around Rs 99,000 crore or Rs 990 billion so far this year. Foreign investors were gross buyers of debt securities worth Rs 31,639 crore (Rs 316.39 billion) till August 22, and sellers to the tune of Rs 18,649 crore (Rs 186.49 billion) — a net inflow of Rs 12,990 crore or Rs 129.90 billion ( $2.14 billion), as per latest data.

The country's debt market has seen a recent surge in foreign buying especially last week after pulling out money in the first fortnight of August.

Moreover, foreign investors had poured in Rs 16,072 crore ($2.65 billion) in a single day (August 20) in the debt market.

According to market analysts, foreign investors believe that the new government would bring several reform measures to pep up the sluggish economy.

Foreign investors have pumped in a staggering Rs 98,802 crore or Rs 988.02 billion ($12.76 billion) into the Indian bond market so far this year, higher than investments of Rs 76,705 crore or Rs 767.05 billion ($16.4 billion) into equities during the period.

The different overseas investors operating in Indian markets include FIIs (Foreign Institutional Investors), FPIs (Foreign Portfolio Investors) and QFIs (Qualified Foreign Investors). From the beginning of June, FIIs along with sub-accounts and qualified foreign investors have been clubbed together by market regulator Sebi to create a new investor category called FPIs.