Reuters Market Eye - Foreign investors bought a net 111.52 billion rupees in July, according to provisional regulatory data, their biggest purchases since February.
Foreign inflows into stocks so far in 2012 now stand at a net 522.66 billion rupees.
Flows remained strong even as optimism last month over potential policy reforms has been replaced in July by concerns the government would struggle to implement fiscal measures given disagreements among ruling coalition parties.
Net purchases came despite the 1.1 percent monthly fall for Sensex, which reverses the strong gains seen in June and lags the 3.6 percent gain in the MSCI Asia-Pacific index excluding Japan.
