Overseas investors have poured in a net amount of over Rs 8,400 crore in the Indian capital markets so far this month, primarily on account of easing of foreign investment norms and positive global cues.
This follows a massive outflow of foreign investors' funds in the previous two months from Indian equity and debt markets.
The net inflow by Foreign Portfolio Investors (FPIs) in the equities so far in July stands at Rs 7,261 crore while the same in the debt market has risen to Rs 1,154 crore, resulting in an overall net inflow of Rs 8,415 crore ($1.32 billion), according to the data available with the depositories.
Prior to that, FPIs' net outflow was over Rs 1,600 crore from the capital markets (debt and equities) in June while they withdrew a net amount of Rs 14,272 crore in May.
Market experts said the government's approval of a composite foreign direct investment (FDI) structure, which will result in further capital flowing into the system, has lifted the investors confidence and helped revive the inflows.
In addition, Greek law makers, that passed the austerity laws aimed at paving the way for a bailout by the European Union, further boosted sentiment.
Besides, a meltdown of the Chinese equity market helped in diverting foreign funds towards India.
With the latest inflow, money invested by FPIs in the capital markets has reached close to Rs 86,842 crore ($14 billion) since the beginning of 2015.
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