Overseas investors pumped in Rs 11,337 crore in the Indian debt market last month and were net buyers of bonds for the second straight month this year.
Foreign institutional investors (FIIs) were gross buyers
of debt securities worth Rs 27,657 crore and sellers of bonds
to the tune of Rs 16,320.1 crore, resulting in a net inflow of
about Rs 11,337 crore, according to data with the Securities
and Exchange Board of India.
Besides, FIIs invested Rs 1,404.3 crore in the equity
market last month. Foreign investors had made a net investment of Rs 12,609 crore in the debt segment in January.
In 2013, FIIs withdrew Rs 50,847 crore (USD 8 billion)
from the bond market and infused Rs 1.13 lakh crore (USD 20.1
billion) in equities.
They started pulling out from the Indian debt market
after the US Federal Reserve first indicated in May that it
would taper its stimulus programme, raising concerns that
funds for investing in emerging markets may be reduced.
The Fed subsequently started tapering its bond purchases
in January. The rupee, which touched an all-time low of 68.85 against the dollar in August, has recovered and closed at 61.75 on Friday.
As of February 28, the number of registered FIIs stood at
1,721, while there were 6,354 registered sub-accounts.