For the week ended February 20, the FPIs bought stocks worth Rs 4,334.55 crore or USD 697.6 million, according to data with the National Securities Depository Limited (NSDL).

During the previous week ended February 13, the FPIs had turned net sellers. They had massively sold stocks worth Rs 2,186.68 crore or USD 387.35 million.

In the week ended on February 6, the FPIs had bought stocks worth Rs 4,701.86 crore or USD 761.53 million. The foreign institutional investors (FIIs) along with sub-accounts and qualified foreign investors have been clubbed together by market regulator Securities and Exchange Board of India (SEBI) to create a new investor category called FPIs.

"Flows from FII's have been on the positive side, some small inflows from the DII's as well," said Gaurang Shah, vice president, Geojit BNP Paribas Financial Services.

Analysts said that positive wholesale price index numbers, aggressive bidding for coal blocks and strong quarterly performance of largecaps like BHEL, TCS, HDFC, Sesa Sterlite, Mahindra and Mahindra and ITC led FPIs to stage a come back.

India's wholesale price inflation decelerated by 0.39 percent in January from an increase of 5.11 percent in the corresponding period of last fiscal. The deceleration in inflation was attributed to decline in fuel and power prices.

"The data points on the domestic front were supportive both CPI (consumer price index) and WPI (wholesale price index). The concern was from the IIP (index of industrial production) no's which were lower then estimate," Shah said.

The expectation on rate cut from the RBI is building up in the month of March'15 post the clarity on fiscal situation in budget of the government of India.  

Moreover the positive weekly gains of the 30-scrip Sensitive Index (Sensex) of the SP Bombay Stock Exchange (BSE) was attributed to the FPIs infusing funds.

The BSE Sensex closed the weekly trade on Feb 20 at 29,231.41; up by 136.48 or 0.47 percent. The broader markets outperformed benchmarks with the BSE Midcap and Smallcap indices rising 0.89 percent and 1.66 percent, respectively.

FPIs were also anxious about the resolution on the Greek front. "On the global markets the Eurozone has been in focus again due to the Greek bailout plan. However, a large part of the global participants feel that eventually an agreement will be met," Shah added.

The next major triggers for the FPIs interest in the Indian markets will be the railway and union budget.

Parliament will commence the budget session on February 23. The railway budget will be presented on Feb 26, which will be followed by the economic survey on February 27 and the union budget on February 28.

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