Bullish foreign fund houses have invested over $1.5 billion (about Rs 7,100 crore) in the Indian equity market in the first five trading sessions of this month.
Till April 11, foreign institutional investors (FIIs) were gross buyers of shares worth Rs 23,202.20 crore, while they sold equities amounting to Rs 16,095.80 crore, resulting in a net investment of Rs 7,106.50 crore or $1.6 billion, as per the data available with the capital markets regulator Securities and Exchange Board of India (Sebi).
According to analysts, FIIs have been pumping funds into India because of its strong growth potential and feels that in the coming days too, the foreign fund houses are likely to infuse money in the Indian bourses.
"The FII continued to witness inflows in April after having a good supply of money in the last month. One of the reason could be the expectation of good corporate earnings," SMC Capitals Equity Head Jagannathan Thunuguntla said.
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