Overseas investors have pumped a staggering $1.5 billion into the country's debt markets in the first two weeks of this month, primarily due to ‘positive real interest rates’ and lower currency volatility. However, in view of higher stock valuations, foreign portfolio investors (FPIs) pulled out Rs 1,775 crore ($272 million) from equities during this period. According to latest depository data, FPIs invested a net sum of Rs 10,303 crore ($1.57 billion) in debt markets during October 3-13.
This comes following a net inflow of Rs 1.4 lakh crore in last eight months, February-September 2017. Prior to that, they withdrew more than Rs 2,300 crore. “Positive real interest rates and lower currency volatility is the primary reason for continued FPI inflows in Indian debt markets.” Bajaj Capital CEO Rahul Parikh said.