Overseas investors have poured in nearly Rs 12,000 crore (about $2.2 billion) into the Indian equity market so far this month.
With this, the total foreign investment in the country’s equity market has reached Rs 73,029 crore ($13.5 billion) since January. During May 2-17, foreign institutional investors (FIIs) were gross buyers of shares worth Rs 37,997 crore, while they sold equities amounting to Rs 26,005 crore -- a net inflow of Rs 11,993 crore ($2.2 billion), according to the data available with market regulator Sebi.
FII net investments had plunged to the lowest level in 16 months during April, attracting net inflow of Rs 5,414 crore.
Market experts attributed current inflows to improved global liquidity situation and some softening in crude as well gold prices, which may help contain the already very high Current Account Deficit.
They said inflows slowed last month because of a slew of factors such as profit-booking, high CAD and political uncertainty.