FPIs invest Rs 3,700 crore in June, total hits Rs 20,600 crore in 2016

New Delhi: Foreign investors brought in over Rs 3,700 crore into Indian stock markets in June, taking the total to more than Rs 20,600 crore so far this year, mainly on hopes of a good monsoon. It follows a staggering inflow of more than Rs 32,000 crore in preceding three months (March-May).

Foreign portfolio investors (FPIs) turned net buyers of equities in March after pulling out a massive Rs 41,661 crore from the market in the previous four months (November-February).

"Good monsoons should drive improvement in earnings in 2016-17 and India remains a long-term structural story. Better near-term as well as long-term catalysts might have led to higher flows," Quantum AMC Associate Fund Manager Equity Nilesh Shetty said.

According to data available with depositories, FPIs net invested Rs 3,713 crore in the stock market last month. However, they pulled out Rs 6,220 crore from the debt market during the period under review. So far this year, FPIs have invested Rs 20,648 crore in equities while withdrawing Rs 12,105 crore in the debt market, resulting in a net inflow of Rs 8,543 crore.