Overseas investors have pumped in over Rs 3,500 crore in the Indian debt market so far in January, when the US Federal Reserve is scheduled to start reducing its monthly bond purchases by USD 10 billion, reported PTI.
Foreign institutional investors (FIIs) were gross buyers of debt securities worth Rs 8,155 crore and sellers of bonds to the tune of Rs 4,609 crore till January 10, resulting in a net inflow of Rs 3,546 crore (USD 572 million), according to Sebi data.
FIIs also invested Rs 545 crore in the equity market. Their total investment in debt and equity was about Rs 4,091 crore, said the media report.
According to the report, FIIs inflow in debt market is returning on account of some stability observed in foreign exchange and interest rates.
The US Federal Reserve decided to taper its monthly bond-buying programme, raising concerns that funds available for investing in emerging markets may be reduced.
Starting this month, the US central bank will cut its bond purchases to USD 75 billion from USD 85 billion, according to a statement after the Federal Open Market Committee meeting on December 18.