Foreign Portfolio Investors (FPIs) made a net investment of Rs 2,122 crore in Indian equities in the period September 1-16, while in debt markets; they net invested Rs 3,668 crore, resulting in a total inflow of Rs 5,790 crore, latest data from the depositories show.
FPIs had made a net investment of Rs 25,904 crore in two months of July and August.
The total investment made by overseas investors in equities this year thus far stands at Rs 42,972 crore, while they withdrew Rs 3,680 crore from the debt market, resulting in a net flow of Rs 39,292 crore.
A better monsoon has bolstered hopes of a pickup in domestic consumption while the nod to the much anticipated Goods and Services Tax (GST) bill and higher domestic passenger vehicle sales also buoyed sentiment.
Meanwhile, a retreat in consumer inflation, the RBI’s benchmark price gauge, to the lowest level in five months at 5.05 per cent in August has also raised hopes of a near-term cut in interest rates.