Overseas investors have pumped in $2.5 billion into the Indian debt market so far this year, out of which over $1 billion has been invested in March alone.
Market analysts attributed the inflows into the debt market to the easing of investment norms for Foreign Institutional Investors buying government and corporate bonds.
FIIs infused $1.2 billion (Rs 6,532 crore) during March taking the total so far in 2013 to $2.49 billion (Rs 13,480 crore) in the Indian bond market, as per data available with the Securities and Exchange Board of India.
FIIs had pumped in $743 million (Rs 4,000 crore) in February and $551 million (Rs 2,947 crore) in January.
From March 1-26, FIIs were gross buyers of debt worth Rs 24,089 crore. They sold bonds worth Rs 17,557 crore, translating into a net investment of Rs 6,532 crore ($1.2 billion).
Equity market
FIIs have also invested $1.5 billion (Rs 8,557 crore) in the stock market in March, taking their overall investment to $10.2 billion (Rs 55,055 crore) so far this year. They had pumped in $4.57 billion in February and $4.05 billion in January.
Last week, Finance Minister P. Chidambaram had announced that the Government would remove all the restrictions and sub-limits within the two broad categories — government securities and corporate bonds — from April 1.
It will keep the ceiling of $25 billion for government securities and $51 billion for bonds issues.