The liquidity-driven rally also lifted shares of smallcap and midcap companies that are poised for their biggest quarterly gain in six years.
Earlier, foreign investors remained net sellers for three consecutive months. They pulled out a net Rs 7,366 crore in May, Rs 15,403 crore in April and a record Rs 1.1 trillion in March
Equities saw a net outflow of Rs 6,883 crore in April and Rs 61,973 crore in March, hit by coronavirus-induced disruptions.
Foreign portfolio investors pulled out Rs 62,000 crore from Indian equities in March
While a coordinated aggressive monetary easing from the central banks is most likely to offer some respite in the near-term, it is unlikely to improve the sentiments
In September, the government slashed the corporation tax rate. He's also eased foreign investment rules in retail, manufacturing and coal mining, & merged 10 state-run banks to create four big lenders
Top sectors that witnessed FPI buying included financials, insurance, oil, gas and telecommunication services.
The positive sentiments in equities could be attributed to a likely strong rebound in corporate earnings over the next two quarters and ease of global oil prices