Foreign Portfolio Investors (FPI) have made a total net investment of Rs 15,520 crore in Indian equities so far in June.
FPIs have made a comeback after pulling out investments for two consecutive months. In April and May, net selling by FPIs stood at Rs 9,659 crore and Rs 2,954 crore.
The return of the foreign funds comes amid declining number of daily Covid-19 cases and robust Q4 earnings.
Total net investment by FPIs in 2021 stands at Rs 58,649 crore.
With the rise in FPIs, the key Indian equity indices also have off late climbed to new highs.
On Friday, both the BSE Sensex and Nifty50 on the National Stock Exchange (NSE) touched their all-time intra-day highs of 52,641.53 and 15,835.55 points, respectively.
Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities said: “We expect FPI flows to India, in the medium term, to remain strong as India is at a cusp of growth revival path.”
He added that low interest rates, better exports outlook and revival in global economy is a good combination for India’s economic revival. Domestic demand revival will also be supported by upcoming festival season, according to Chouhan.