New Delhi, July 6 (IANS) Foreign portfolio investors (FPIs) infused Rs 7,962 crore in equity this month (till July 5) while their debt investments in the same period stood at Rs 6,304 crore, market watchers said on Saturday, citing the NSDL data.

This year, FPIs have invested Rs 11,162 crore in equity till now while the FPI investment in debt for the same period stands at a massive Rs 74,928 crore.

The inclusion of Indian government bonds in the JP Morgan Emerging Markets (EM) Government Bond Index and the front-running by investors have contributed to this divergence in equity and debt inflows, according to market experts.

Milind Muchhala, Executive Director, Julius Baer India, said India remains an attractive investment destination amid a healthy economic and earnings growth momentum, and the FPIs cannot afford to ignore the markets for too long.

"In the event of a global risk-on environment, triggered by increasing expectations of rate cuts, it could lead to increasing flows to EM equities, with India expected to emerge as one of the bigger beneficiaries of the flows," he added.

In the fortnight ending June 30, FPIs bought heavily in telecom and financial services.

They were also buyers in autos, capital goods, healthcare and IT.

Selling was seen in metals, mining and power which had run up, too, fast in recent months.