Foreign Investments Hit Rs 21,000 Crore In January

Easing inflation and rate cut by the Reserve Bank of India (RBI) have encouraged foreign investors to put in more than Rs 21,000 crore in Indian capital markets in this month.

Foreign Institutional Investors (FIIs) had bought shares of Rs 5,992 crore ($977 million) and debt worth 15,336 crore ($2.5 billion) till January 23, making total investments worth Rs 21,328 crore ($3.45 billion), as per Central Depository Services Ltd (CDSL) data.

According to market analysts, the staggering inflow of investments was due to a decline in inflation and rate cut by the central bank. In a move that surprised market participants, the RBI had cut rate by 25 basis points on January 14.

Moreover, foreign investors are also banking on the country’s capital markets on the likelihood of further rate cuts.

The net investment by foreign investors into the debt markets was Rs 1.16 lakh crore in 2014. The foreign investments in equities were Rs 98,150 crore. The total net investment by foreign investors was Rs 2.58 lakh crore last year.
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