FII Inflows have touched a record high as foreign investors injected over Rs 2.7 lakh crore into the Indian capital markets last year. Foreign Institutional Investors invested a net amount of Rs 1.09 lakh crore in equity in 2014-15, and a further Rs 1.64 lakh crore in debt — Rs 2.73 lakh crore in all, as per the latest data with the Central Depository Services Ltd (CDSL). This is the highest net FII inflow since they were allowed to invest in India in 1992.
FII investors were renamed FPIs or Foreign Portfolio Investors in the current fiscal under a new regime that promises to make easier for them to invest in India. They have emerged as a key driver of the market rally and are likely to remain so. This is the fourth time in history that net FII inflows for a year have crossed the Rs 1 lakh crore mark and analysts are optimistic about the current year too. Foreign investors remained bullish on the Indian markets in 2014-15, mainly on account of several reform measures taken by the Central Government.
Experts are hopeful of the inflows remaining equally strong or even better in the current fiscal year in view of Parliament clearing Bills on insurance, coal allocation and mining and the Budget assurances on revisiting controversial tax areas like General Anti-Avoidance Rules.