Foreign investors were buyers of 24.73 billion rupees in Indian equities on Monday, their biggest single day buying since September 19, regulatory and exchange data show.
Overseas investors also bought Indian equity derivatives worth 37.37 billion rupees on Monday, exchange data shows.
Foreign investors have bought 1 trillion rupees so far this year in shares, making these capital flows vital for India's current account balance.
Going forward, the focus of the market would shift to the FOMC meeting on December 17-18 and expectations about the Fed tapering.
Consumer inflation data due on Thursday would be the key to gauge if the RBI will tighten its monetary policy on Dec 18.