FIIs pump Rs 8,400 cr in stocks in July

Foreign investors have poured a little over Rs 8,400 crore into the Indian equity market this month so far sidelining concerns over weak monsoon, slowing economic growth and a high interest rate regime.

After three consecutive months (April-June) of selling, overseas investors infused Rs 8,424 crore into the equity market till July 27, according to the data available with the Securities and Exchange Board of India (Sebi).

Market experts said foreign investors have sidelined concerns over weak monsoon, slowing economic growth and a high interest rate regime, mainly on hopes that government would initiate fresh reforms initiatives as Prime Minister Manmohan Singh had taken the additional charge of the finance portfolio. Besides, investors are expectig that the government would initiate a few key reforms before the start of the Monsoon Session of Parliament on August 8.

During July 3-27, Foreign Institutional Investors were gross buyers of shares worth Rs 44,192 crore, while they sold equities amounting to Rs 35,768 crore, translating into a net inflow of Rs 8,424 crore.