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Investments by foreign institutional investors (FIIs) picked up significantly in this calendar year due to optimism ahead of the elections. FIIs were net buyers in debt in the first six months of the current year, with purchases of Rs 62,792 crore. They were net sellers of Rs 9,270 crore in the corresponding period of the previous year. In 2013, FIIs were net sellers of Rs 31,342 crore in June despite being net buyers in the previous months. This was because in June 2013, there were concerns of the US tapering its bond buying programme. In 2014, FIIs turned net sellers only in April as they were not permitted to invest in short-term securities like treasury bills (T-bills).
However, in May, FII inflows in debt were the highest this year due to the euphoria of a new government taking over. FII flows continued in June, too, though the quantum had slightly reduced
