Mumbai, Jul 31 (IANS): Overseas funds have been net buyers in the Indian market to the tune of over $282 million (about Rs.1,250 crore) in the week ended June 29, according to official data available with the capital markets watchdog.

This even as Indian equities markets saw heavy selling following the interest rate hike by the Reserve Bank of India during the week.

The 30-scrip sensitive index (Sensex) of the Bombay Stock Exchange (BSE), ended the week at 18,197.20 points, down 2.80 percent or 525.10 points from its previous week's close at 18,722.30 points.

The National Stock Exchange's benchmark, the S&P CNX Nifty, too lost 152 points or 2.69 percent to end the week at 5,482 points compared to its previous weekly close of 5,633.95 points.

FIIs were net buyers for the whole of July, pumping in over $1.8 billion in the equities markets, according to data available with the Securities and Exchange Board of India (SEBI).

Analysts, however, say that foreign institutional investors (FIIs) not following the selling spree by domestic traders had more to do with the lack of opportunity in other global markets.

"In recent correction from due to 50 basis points hike in interest rate by RBI, interestingly FIIs have not sold in cash market segment. However they have created meaningful short positions in stock futures," said a note from Angel Broking.

"We believe globally the uncertainty level has increased and hence FIIs may not have sold in cash due to lack of alternate opportunity. After important events unfolding in 1st week of August series, we may see them coming back into action; buy or sell depending on the outcome of the events," it added.

Till July, the total FII participation in Indian equities markets were logged at $2.43 billion. They had pumped in a record $28.83 billion in 2010.