New Delhi: Continuing their bullish stance on India, foreign investors have pumped in close to Rs 4,400 crore into India’s stock markets so far this month, driven by hopes of an above normal monsoon.
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 upbeat investor sentiment on account of strong macroeconomic data, encouraging fourth quarter earnings, string of key Cabinet decisions and a forecast of good monsoon.
Besides, investors are hopeful that Parliament would approve the long-pending Goods and Services Tax (GST) Bill in the upcoming monsoon session.
According to data available with depositories, FPIs invested Rs 4,394 crore in stock markets this month till June 16, while it pulled out Rs 1,607 crore from the debt market, leading to a total inflow of Rs 2,787 crore ($417 million).
Capital inflows by FPIs are often referred to as hot money due to their unpredictability, although the funds continue to remain one of the key drivers of the stock market.
So far this year, FPIs have invested Rs 19,848 crore in equities while withdrawing Rs 6,955 crore from debt market, resulting in a net inflow of Rs 12,893 crore.