Inflows in equities were about Rs 6,372 crore (USD 966 million) during September 2-13, while there was a pull-out of Rs 382 crore (USD 64 million) from the debt market, translating into net inflows of Rs 5,990 crore (USD 922 million), as per latest data available with market regulator Sebi.
In August there was a net withdrawal of nearly Rs 16,000 crore (about USD 2.5 billion) from the domestic capital markets.
Since the beginning of 2013, foreign investors have infused a net Rs 66,542 crore (USD 12.6 billion) in equities, while overseas investors have withdrawn Rs 31,280 crore (USD 4.8 billion) from the debt market.
Analysts said renewed buying by foreign institutional investors (FIIs) was witnessed after Rajan took over as the RBI chief and announced a slew of measures to attract capital flows and boost economic growth.
Rajan, who took over as RBI chief on September 4, had announced various steps to attract dollar inflows, including enhanced limits for exporters to re-book cancelled forward exchange contracts and a window to swap foreign currency deposits.
The local currency, which has been deprecating since May, has spurted about 2.2 per cent so far this month. It closed at 63.48 against the dollar on Friday.
Also, factors such as easing tensions in Syria, positive news about India's trade deficit situation and improvement in car sales in August helped overseas investors park funds in the country, experts added.
There has been a turmoil in the global markets after the US Federal Reserve said it may taper the USD 85 billion in a month bond purchase programme later this year and end it next year if the US economic recovery is up to its expectations.
The Fed's bond buy programme, through which it infuses liquidity in the US market, has driven asset prices higher, including those in emerging markets, and there are fears that inflows may be hit if the US monetary stimulus comes to an end.