New Delhi, June 17 -- The telecom pack is back in the spotlight, drawing strong interest from foreign investors, with signs that domestic mutual funds may be catching on as well.

NSDL data show that out of the $2.32 billion poured in by foreign portfolio investors in May, about $1.88 billion went into telecom stocks, making for the biggest-ever monthly FPI inflow into India's telecom sector. It's also a steep jump from $523 million in April, signalling rising investor confidence in the space.

One of the main reasons for this influx of capital in the telecom sector could be Singtel selling its 1.2% stake in Bharti Airtel in a block deal in mid-May, on a private placement basis, to international and Indian institutional investors.

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