New Delhi: Overseas investors continued to show good appetite for Indian bonds and pumped in a little over Rs 3,700 crore in such markets so far in the new year.For latest news on Business & Budget 2017, like us on Facebook and follow us on Twitter.
The latest inflow comes following a net investment of Rs 45,856 crore ($7.4 billion) by them in the debt markets in 2015.
According to data available with depositories, foreign portfolio investors (FPIs) infused a net amount of Rs 3,706 crore ($554 million) into the debt markets during January 1-8.
However, FPIs pulled out Rs 493 crore from equity markets, still leaving behind an investment of Rs 3,214 crore during the period.
Capital poured in by the FPIs is often referred to as 'hot money' because of its unpredictability, although they continue to remain among the most important drivers of Indian stock markets.
Market experts attributed the inflows in debt markets to relative stability of the rupee compared with other currencies.
In addition, crude oil prices are expected to stay below $50 a barrel, the current account deficit is in control and the outlook for the currency is also positive, they added.
Overseas investors withdrew money from the equity markets on concerns over the health of Chinese economy.