Foreign portfolio investors (FPI) have made a net investment of Rs 5,001 crore so far in August in Indian equities, according to data from NSDL.
The FPIs have made a comeback after a net outflow of Rs 11,308 crore in July.
With the investments in August, the net FPI investment in the equities segment in 2021 now stands at Rs 54,037 crore.
During the week which ended on Friday, the Indian stock market scaled new highs, with the BSE Sensex crossing the 56,000 mark.
On Wednesday, Sensex touched an all-time high of 56,118.57 points. Although profit booking and global cues subdued the market later in the truncated trading week.
Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities said: "FPIs have been net buyers in Indian equities in Aug 2021 till date. FPI flows are expected to be volatile, given FOMC meeting minutes suggesting increased tapering likelihood."
"Tapering is expected to have a substantial impact on global equity markets," he said.