MUMBAI: India's forex reserves jumped by $2.5 billion to reach a record high at $355.9 billion for the week that ended on March 18, the Reserve Bank of India said on Friday in its weekly statistical report. The previous high stood at $355.4 billion reported on June 27 of last year.
A section of the market said that improving macro economic situation of the country could have caused foreign institutional investors to become net buyers from net sellers causing dollar inflows into the country.
As per NSDL data till March 18, FIIs have become net buyers after being net sellers for the months of January to March having invested Rs 15,665 crore in Indian equities and Rs 816 crore in the Indian debt market.
After several weeks of choppy market conditions, with sentiments in the stock markets improving, jump in forex reserves reveal that foreign investors have started investing back into the Indian markets.