Mumbai - Foreign portfolio investors (FPIs) have invested a staggering over $2 billion in the Indian equity markets this month till the week ended November 17, according to domestic depository data.
The FPIs directed a total amount Rs 14,348 crore ($2.2 billion) into equities during November 1-17, National Securities Depository Ltd (NSDL) data showed.
During the same period, however, the FPIs also withdrew Rs 1,287 crore from the Indian debt market.
This follows a net inflow of over Rs 3,000 crore into stock markets in October.
During the current fiscal, FPIs have invested Rs 51,756 crore in equities and another Rs 1.45 lakh crore in the domestic debt markets.
Market analysts attribute the recent inflow to improvement in global sentiment as well as the government's recent announcement on recapitalising state-run banks.
In a stimulus package aimed to boost flagging economic growth, create jobs and increase credit flow, the union cabinet last month approved a Rs 2.11 lakh crore recapitalisation plan for state-run banks and massive road infrastructure investment of nearly Rs 7 lakh crore over five years.
Of the support to banks, Rs 1.35 lakh crore will be raised through recapitalisation bonds and the remaining sum through budgetary support and market borrowings.
The foreign investor inflow was further triggered by news earlier this month of India rising 30 places in the World Bank's latest 'Ease of Doing Business' report. For the first time, India moved into the top 100 in the rankings from its 130th position last year, riding on sustained government reforms which include making tax payments easier.
On November 18, US credit rating agency Moody's upgraded India's sovereign ratings to Baa2 from its lowest investment grade of Baa3 and changed the outlook for the country's rating to stable from positive. It said this was based on the Indian government's "wide-ranging programme of economic and institutional reforms".
There was also a record foreign direct investment (FDI) inflow of $60 billion during 2016-17.