Rs 7,600 cr FII outflows form Indian debt market in a week
Over the past week, Indian debt market has witnessed as sharp pull out of Foreign Institutional Investments (FIIs) of more than Rs 7,600 crore ($1.35 billion).
What is the reason for this outflow?
As per market experts, the continuous depreciation of Indian currency against US dollar is the reason behind the huge outflow from the debt market. The rupee plummeted to the key 57-mark against US dollar for the first time in a year.
FII status in 2013:
- So far in 2013, bond buyers have made an investment of Rs 16,372 crore ($3.2 billion), owing this to higher yields offered by the government and corporate debt and easing of FII investment rules by doing away with sub-limits and reducing the withholding tax on debt investments .
- The total foreign investment in the country’s equity market has reached Rs 83,322 crore ($15.4 billion) so far this year.
- Currently, the number of registered FIIs in the country stood at 1,754 and the total number of sub-accounts at 6,411.