New Delhi, Aug 8 (IANS): Foreign Portfolio Investors (FPIs) invested Rs11,763 crore ($1.40 billion) in July, according to NSDL data.

It is the highest investment since April 2022 when a new sectoral classification was implemented in the market by NSDL.

After this exercise, the number of sectors on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) was reduced from 35 to 22.

Earlier, IT was divided into three sectors: Software, services and hardware.

The reason for buying IT shares by FPIs is the possibility of the rate cut by the US Fed in September.

If it happens companies' IT spending will further increase.

It's beneficial for the entire IT Sector. In the last one month, Tata Consultancy Services (TCS) surged 5 per cent, Infosys rallied 5.5 per cent and HCL Tech was up by 3.5 per cent.

During this period, BSE benchmark Sensex and NSE benchmark Nifty have given negative returns of about one per cent and half per cent respectively.

The Nifty IT index gained 13 per cent in July. It is the best monthly return since August 2021. FPIs pumped in Rs 54,727 core in equity and debt in the full month of July.

According to the NSDL data, FPIs invested Rs 32,364 crore in equity and Rs 22,363 crore in debt in July.

FPIs activities are influenced by various factors like the performance of the global equity markets, the movement of dollar index, incremental geopolitical events, and opportunities in the Indian markets considering slightly elevated valuation levels.

Experts cite three key reasons behind massive inflow: Strong economic outlook, rate cut and government fiscal discipline.

The Economic Survey that was presented before the Union Budget this year projected India's growth rate to be at 6.5 to 7 per cent for 2024-25.