Foreign investors have pumped in almost ₹19,000 crore into the Indian debt market so far in the new year after being net sellers of bonds in 2013.

According to market experts, FII inflows into the debt market are coming back on account of stability observed in foreign exchange and interest rates.

Foreign institutional investors (FIIs) were gross buyers of debt securities worth ₹30,266 crore and sellers of bonds to the tune of ₹11,450 crore till January 24, resulting in a net inflow of ₹18,816 crore ($3.05 billion), according to data from the Securities and Exchange Board of India.

In addition, FIIs infused ₹3,473 crore ($563 million) into the equity market during this period, taking their total investment in debt and stocks to about ₹22,289 crore ($3.61 billion).

In 2013, overseas investors withdrew ₹50,847 crore ($8 billion) from the bond market and infused ₹1.13 lakh crore ($20.10 billion) in equities.

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

Fed has subsequently decided to start reducing its bond purchases by $10 billion to $75 billion from this month.

The rupee, which touched an all-time low of 68.85 in August, has recovered and closed at 62.66 against the dollar on Friday.

The Reserve Bank of India had kept its key interest rate unchanged at the mid-quarter monetary policy review on December 18.

There were 1,724 registered FIIs in the country and 6,354 sub-accounts as of January 24.

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