New Delhi: Building on their buying momentum, foreign investors poured in over Rs 3,700 crore into Indian stock markets so far this month, driven by hopes of a good monsoon and positive macroeconomic data.
It comes following a staggering inflow of more than Rs 32,000 crore in the preceding three months (March-May).
Foreign portfolio investors (FPIs) turned net buyers of equities in March after pulling out a massive Rs 41,661 crore from the market in the previous four months (November-February).
Market experts attributed the inflows to an upbeat investor sentiment on account of strong macroeconomic data, encouraging fourth quarter earnings and a forecast of good monsoon rains.
FPIs invested Rs 3,727 crore in stock markets this month till June 9, while they pulled out Rs 1,833 crore from the debt market, leading to a total inflow of Rs 1,893 crore ($283 million), data available with depositories showed.
India’s GDP grew 7.9 per cent in January-March, taking the overall economic growth to a five-year high of 7.6 per cent for the entire fiscal year, the latest government data showed.
Also, the production of eight core sectors grew 8.5 per cent in April, on the back of a pick-up in output of refinery products, fertilisers, steel, cement and electricity, which also impacted trading sentiment.
So far this year, FPIs have invested Rs 19,180 crore in equities while withdrawing Rs 7,181 crore in the debt market, resulting in a net inflow of Rs 11,999 crore.