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.
Market experts attributed the inflows to upbeat investors sentiment on account of strong macroeconomic data, encouraging fourth quarter earnings and a forecast of good monsoon rains.
According to the data available with depositories, FPIs invested Rs 3,727 crore in stock markets this month till June 9, while it pulled out Rs 1,833 crore from the debt market, leading to a total inflow of Rs 1,893 crore (USD 283 million.)
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, as per latest government data.
Also, the production of eight core sectors grew 8.5 per cent in April on the back of pick up in output of refinery products, fertilisers, steel, cement and electricity, 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.