Foreign investors have bought a net of 94.32 billion rupees in Indian equities so far this month, according to provisional regulatory data, after selling in each of the previous three months.
Inflows so far in July have surpassed the 83.8 billion of net purchases in March.
Foreign investors have now bought a net 514.25 billion rupees in Indian stocks so far this year, compared to their 27.14 billion rupees of net sales in 2011.
A Bank of America-Merrill Lynch survey out on mid-July shows foreign investors have increased their exposure to Indian equities but still remain underweight, while remaining overweight in China despite reducing their exposure.
The Sensex rose 7.5 percent in June, but is down 3.2 percent in July so far.
