Foreign investors have pumped in Rs 1.31 lakh crore into the country’s debt and equity markets so far this year, according to data from the National Securities Depository Ltd. The capital flow has largely gone into the domestic debt market, thanks to India’s inclusion in the JPMorgan Global Emerging Market Bond Index.
July has seen Rs 22,363 crore and Rs 32,365 crore make its way into Indian bonds and equities, respectively.
For the week-ended Aug. 2, foreign currency assets—a major component of the reserves—rose by $5.16 billion to $592 billion, RBI data showed.
In dollar terms, foreign currency assets include the effect of the appreciation or depreciation of non-US units like the euro, pound and yen held in foreign exchange reserves.
Gold reserves increased by $2.4 billion to $60 billion during the week.