FIIs invest Rs 11,337 crore in Indian bonds in February

Overseas investors pumped in Rs 11,337 crore in the Indian debt market last month and were net buyers of bonds for the second straight month this year.

Foreign institutional investors (FIIs) were gross buyers of debt securities worth Rs 27,657 crore and sellers of bonds to the tune of Rs 16,320.1 crore, resulting in a net inflow of about Rs 11,337 crore, according to data with the Securities and Exchange Board of India.

Besides, FIIs invested Rs 1,404.3 crore in the equity market last month.

Foreign investors had made a net investment of Rs 12,609 crore in the debt segment in January.

In 2013, FIIs withdrew Rs 50,847 crore ($8 billion) from the bond market and infused Rs 1.13 lakh crore ($20.1 billion) in equities.

They started pulling out from the Indian debt market after the US Federal Reserve first indicated in May that it would taper its stimulus programme, raising concerns that funds for investing in emerging markets may be reduced.

The Fed subsequently started tapering its bond purchases in January.

The rupee, which touched an all-time low of 68.85 against the dollar in August, has recovered and closed at 61.75 on Friday.

As of February 28, the number of registered FIIs stood at 1,721, while there were 6,354 registered sub-accounts.