With overseas investors pumping in over Rs 2,000 crore in the Indian capital markets so far this month, total foreign fund inflows have crossed the Rs 81,000 crore mark since the beginning of the year.
Analysts expect the inflows to accelerate further going ahead, helped by clearance of reform bills for insurance, coal and mining, as also on assurances on controversial issues like General Anti Avoidance Rules (GAAR).
Foreign Portfolio Investors (FPIs) have bought shares worth Rs 2,392 crore till April 10 this month, while they pulled out Rs 337 crore from the debt markets, taking their net investment to Rs 2,054 crore ($329 million), as per the data compiled by Central Depository Services Ltd.
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Market participants attributed the robust inflows to positive investor sentiment driven by several reform measures announcement by the government.
Finance Minister Arun Jaitley announced a slew of measures to attract overseas investment in the country in the his Budget for 2015-16.
Besides, he has deferred the controversial GAAR by two years to soothe investors' nerves, saying its immediate applicability can create "panic" in markets.
The net inflows by overseas investors in debt markets stood at Rs 1.59 lakh crore in last year 2014, while the same for equities was Rs 97,054 crore.
Overall, the net investment by foreign investors stood at Rs 2.56 lakh crore last year.