Foreign institutional investors (FIIs) have pumped in $1.7 billion (over Rs. 11,000 crore) in the Indian stock market so far this month following Reserve Bank of India (RBI) governor Raghuram Rajan's measures to boost the weakening rupee and revive economic growth.
Moreover, the Federal Reserve's decision to leave its stimulus unchanged also encouraged FIIs to park their funds in the Indian stock market.
Inflows in equities were about Rs. 11,043 crore ($1.73 billion) during 2-20 September, while there was a pull-out of Rs. 985 crore ($159 million) from the debt market, still leaving behind a net inflows of Rs. 1,0058 crore ($1.56 billion), according to the latest data from market regulator Securities and Exchange Board of India (Sebi).
The inflows follow a net withdrawal of nearly Rs. 16,000 crore (about $2.5 billion) from the domestic capital markets in August.
Rajan, who took over as RBI chief on 4 September, had announced various steps to attract dollar inflows, including enhanced limits for exporters to re-book cancelled forward exchange contracts and a window to swap foreign currency deposits.
The local currency, which has been deprecating since May, has zoomed by around Rs. 3.5 or about 5.3 per cent so far this month.
Moreover, the Federal Reserve's decision to leave its stimulus unchanged also encouraged FIIs to park their funds in the Indian stock market.
Inflows in equities were about Rs. 11,043 crore ($1.73 billion) during 2-20 September, while there was a pull-out of Rs. 985 crore ($159 million) from the debt market, still leaving behind a net inflows of Rs. 1,0058 crore ($1.56 billion), according to the latest data from market regulator Securities and Exchange Board of India (Sebi).
The inflows follow a net withdrawal of nearly Rs. 16,000 crore (about $2.5 billion) from the domestic capital markets in August.
Rajan, who took over as RBI chief on 4 September, had announced various steps to attract dollar inflows, including enhanced limits for exporters to re-book cancelled forward exchange contracts and a window to swap foreign currency deposits.
The local currency, which has been deprecating since May, has zoomed by around Rs. 3.5 or about 5.3 per cent so far this month.