FII inflows hit $30 billion for 2014; cumulative crosses $200 billion mark

New Delhi: Betting big on the government's reforms agenda, net investments by overseas investors into India so far this year reached USD 30-billion level, while their cumulative total inflows into the country crossed USD 200-billion mark.

The net investments by foreign investors into Indian debt markets since the beginning of 2014 have reached USD 17 billion (Rs 1.2 lakh crore), while the same for equities stand USD 13 billion (over Rs 78,000 crore)-- taking the total to USD 30 billion (Rs 1.8 lakh crore). This includes a net investment of USD 3.65 billion in this month. 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. FIIs, the main driver of the equity market, have helped pushed up the benchmark BSE Sensex by 26 per cent so far in 2014 and is now moving above 26,000 level. The strong inflows in the recent months have taken the cumulative net investments of FIIs into India to USD 201 billion, while their investments in rupee terms is Rs 9.7 lakh crore.

This is based on the data since November 1992 when the FIIs began investing into Indian markets and includes about USD 159 billion investments into equities and further about USD 42 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.