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Interestingly, most of the funds have been infused in the debt markets.
According to the latest depository data, FPIs invested a net sum of Rs 2,806 crore in the stock markets and another Rs 15,132 crore in debt, taking the total to Rs 17,938 crore ( $2.75 billion) during October 3-27.
This follows a net outflow of over Rs 10,000 crore from the capital markets last month. Prior to that, they had pumped in Rs 1.78 lakh crore in the preceding six months (February- August).
"Indian bonds remain attractive on high nominal and real yields as well with the backdrop of macroeconomic stability and hence it continues to attract FPIs," Quantum Adviors Head Fixed Income and Alternatives Arvind Chari said.
Another major reason could be increase in limits in Indian bonds by Reserve Bank of India (RBI) and capital markets regulator Securities and Exchange Board of India (Sebi) by Rs 14,200 crore for October-December 2017.
FPIs, which had earlier exhausted their limits in Indian government securities and corporate bonds, tapped this opportunity and rushed to buy these securities.
With regard to lower equity inflows, Chari said the same can be attributed to profit booking by FPIs amid high valuations.
"Indian equities on the other hand remain extremely over valued even from a global emerging market perspective and hence witnessing lower inflows compared to bonds," he added.