Mumbai, Aug 11 (IANS) Foreign Institutional Investors (FII) have invested Rs 12,190 crore in last 10 days in the Indian equity market after remaining sellers in the last few months. However, Domestic Institutional Investors (DII) in the same period have sold stocks worth Rs 2,677 crore.

The increase in the amount of money coming into the market has helped benchmark indices to rise sharply and rupee to appreciate against the US.

“There is a complete reversal of FPI activity in the Indian stock market. FPI who were relentless sellers in the Indian market from October 2021 to June 2022 turned net buyers in July and the buying continues in August, so far. The change in FPI strategy has imparted strength to the recent market rally,” said Dr V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

The flows has turned positive in the Indian market nearly after nine months. Foreign investors invested around Rs 4,980 crore in July in the Indian equity markets. This comes after heavy sell-off by these entities of around Rs 50,203 crore in June.

According to the data NSDL data, investment of foreign investors in July month stood at Rs 4,989 crore, as compared to over Rs 50,000 crore outflows in June, Rs 39,993 crore in May and Rs 17,144 crore in April.

The domestic benchmark indices have also risen sharply during the last few days. The Sensex has risen more than 2500 points and Nifty rose 746.65 points in the last 10 days, and is now trading at 59,383.25 and 17,676.25, respectively, till writing of this story.

Experts said that the foreign investors have turned buyers in sectors like capital goods, FMCG, construction and power sectors.

Meanwhile, the rupee has also appreciated sharply after depreciating to a record low last month. At 1.30 p.m., in the interbank foreign exchange market, rupee is trading at 79.44 against the US dollar, up 8 paise from its previous close.