A net amount of about one billion dollars (Rs 6,500 crore) has been flown in by overseas investors in the capital markets so far this month, with the help of positive global cues and easing of foreign investment norms.
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 4,953 crore while the same in the debt market has risen to Rs 1,547 crore, resulting in an overall net inflow of Rs 6,500 crore, according to the data available with the depositories.
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, Greece law makers have passed the austerity laws aimed at paving the way for a bailout by the European Union, which has further boosted sentiment.
With the latest inflow, money invested by FPIs in the capital markets has reached close to Rs 85,000 crore (USD 13.7 billion) since the beginning of 2015.