Mumbai, Dec 6 (IANS): Upbeat about the government's reform agenda and the hopes for a rate cut, kept foreign investors interested in the Indian equities market for the week ended Dec 5.

Positive global cues like continuing ECB (European Central Bank), China and Japan's support to their economies led by higher liquidity, prevailing low crude oil prices, allowed the foreign capital to remain within Indian shores.

Domestic market expectations' about an interest rate cut from the central bank its fifth bi-monthly monetary policy review on Dec 2 was also a a key factors attracting the foreign funds towards India.

For the week ended Dec 5, the FPIs massively bought stocks in equity and primary markets worth Rs.4,031.88 crore or $650.67 million, according to data with the National Securities Depository Limited (NSDL).

For the week ended Nov 28, the FPIs purchased stocks in equities and primary market worth Rs.2,975.48 crore or $480.89 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.

The FPIs had invested Rs.1,443.24 or $357.05 in the equities markets for the week under review.

However, the massive interest shown by the FPIs was not able to uplift the markets' mood which was dampened by the RBI's decision of not cutting key interest rates.

The benchmark index of the Indian equities market lost 0.82 percent or 235.89 points for the week ended Dec 5.

"Markets ended the week with minor losses. Going ahead, we need to see increased investments in the economy, especially from the private sector," said Dipen Shah, head of private client group research, Kotak Securities.

Meanwhile, RBI's dovish statements gave a fill-up to the sentiments. RBI Governor Raghuram Rajan said a change in the monetary policy at the current juncture will be premature and he will wait for the decrease in inflation to continue.

He also mentioned the possibility of a rate cut early next year if the current downturn in inflation momentum continues.

Rajan even predicted an interest rate reduction "outside the policy review cycle" if the data so permits.

Improvement at the ground levels fiscal reforms, along with the consistent moderation in inflation is expected to keep FPIs interest glued to the Indian growth story.

"It is true that domestic economy has stabilised and is in a healthy platform to strengthen ahead from international tailwinds. Higher spend and reform by government will settle to higher GDP growth," said Vinod Nair, head - fundamental research, Geojit BNP Paribas.

Out comes of the winter session, crude, metal prices and budget announcements will be also be watched by the foreign fund managers keenly, experts said.