Foreign investors invested over Rs 3,346 crore in Indian stock markets this week

New Delhi New Delhi: Foreign portfolio investors (FPIs) pumped in Rs 3,346.94 crore in Indian stock markets this week, as investor confidence strengthened after the Reserve Bank of India (RBI) cut interest rates.

FPIs were active buyers in the Indian equity market during the first three trading sessions of the week – June 9 to June 13, according to data from the National Securities Depository Limited (NSDL).

The positive sentiment in the market was mainly driven by the RBI’s decision to cut the repo rate by 50 basis points to 5.5 per cent, which many saw as a clear signal to support economic growth and improve liquidity in the market.

Market experts believe that this surprise cut in rates has played a big role in attracting foreign investment, as it reflects the central bank’s pro-growth approach.

The decision of the Monetary Policy Committee (MPC) on June 6 has been welcomed by investors, who consider it a timely move to strengthen the economy and improve corporate earnings.

Even as global factors continue to influence market movements, India remains an attractive destination for foreign investment due to its strong fundamentals, policy support and growing economy.

In May, foreign investors pumped in Rs 19,860 crore into the Indian stock market, making it the best month of the year so far for foreign investment.

Meanwhile, volatility in Indian equity markets increased this week and closed in the red, according to analysts.

Though the week started on a positive note due to progress in US-China trade talks, this optimism quickly waned after Israel attacked Iran’s nuclear facilities.

The incident triggered a wave of caution among global investors, pushing them towards safe assets such as gold and US bonds.

Oil prices also moved above $76 a barrel, breaking months of stability, as fresh concerns emerged over supply disruptions.