Foreign fund inflows hit $13 billion since beginning of 2015
With overseas investors pumping in over $3 billion in the Indian capital markets this month, total foreign inflows have touched $13 billion since the beginning of the year.
Analysts expect the inflows to accelerate further in view of Parliament clearing bills related to insurance, coal allocation and mining as well as assurances in the Budget to revisit controversial issues like General Anti-Avoidance Rule.
Foreign Portfolio Investors (FPIs) have bought shares worth Rs 11,813 crore ($1.9 billion) from March 2-27. In the debt segment, the net inflows were Rs 8,912 crore ($1.43 billion), taking the total to Rs 20,725 crore ($3.33 billion), as per the data compiled by Central Depository Services Ltd.
The inflows have taken the foreign investment level in the country’s capital markets (equity and debt segments) to Rs 79,000 crore (about $12.75 billion) so far this year. Market participants attributed the robust inflows to positive investor sentiment driven by the government’s announcement of several reform measures.
Besides, Finance Minister Arun Jaitley announced a slew of measures to attract overseas investment in the country in the recent Union Budget.
In 2014, the net inflows by overseas investors in debt markets was Rs 1.59 lakh crore, while the figure for equities stood at Rs 97,054 crore. Overall net investment by foreign investors stood at Rs 2.56 lakh crore last year.
To soothe investors’ nerves, Jaitley had deferred the controversial GAAR by two years, saying that its immediate applicability can create ‘panic’ in markets.
FIPB to take up 32 FDI proposals on April 9
An inter-ministerial panel on April 9 will take up as many as 32 foreign direct investment (FDI) proposals, including that of Mylan Laboratories and S Kumars Nationwide. The Foreign Direct Investment Promotion Board (FIPB), headed by Finance Secretary Rajiv Mehrishi, is
scheduled to meet on April 9 take up the proposals, said the Finance Ministry.
Other proposals on the agenda include that of BASF Chemical India, Nickeldeon Asia
Holdings, Sai Life Sciences Ltd, Maham Nayyar and Sahar Nayyar of Pakistan, Warden Petrochem and Damiani India.
India allows FDI in most of the sectors through automatic route, but in certain segments
considered sensitive for the economy and security, the proposals have to be first cleared by FIPB.