Overseas investors have pumped in close to Rs20,000 crore in the Indian capital markets since the beginning of this month on positive global cues coupled with hopes from the government's reforms agenda.
The net investment by foreign investors in the equity market was Rs10,778 crore ($ 1.75 billion) from November 3-21, while they infused a net amount of Rs 8,870 crore ($ 1.44 billion) in the debt market, taking the total to Rs 19,648 crore ($3.2 billion), as per the latest data.
Market analysts said that overseas investors under the new category FPI (comprising Foreign Institutional Investors, sub-accounts or foreign portfolio investors) are betting on hopes that European Central Bank (ECB) may announce stimulus measures to revive growth in the Eurozone economies.
Besides, Japan has already announced plans to expand its additional stimulus package.
Analysts believe that this excess liquidity will come more into India compared to other emerging market countries.
Moreover, they said, foreign investors are betting on India on account of the reforms agenda of the Central government.