Foreign investors have pumped in nearly Rs 5,000 crore in the Indian market so far this month on hopes of a stable and reforms-oriented government after the general elections results next week.
Foreign Institutional Investors (FIIs) pumped in Rs 2,124 crore in the stock market, and Rs 2,871 crore in debt securities, taking the total to Rs 4,995 crore (USD 830 million) from May 2-9, as per data from the Securities and Exchange Board of India.
According to market analysts, FIIs are bullish on India and expect a stable government to be formed after the Lok Sabha elections.
The 9-phase voting process, which began on April 7, will conclude on May 12 and the counting of votes will take place on May 16.
FIIs, the main drivers of the equity market, have helped push up the benchmark BSE Sensex by 2.5 per cent so far in May and had touched 23,000 mark on Friday before closing at 22,994.23 points.
The strong inflow in the recent months has taken the net investment by FIIs to Rs 33,923 crore in Indian equities so far this year and Rs 29,217 crore in the debt market during the period taking the total to Rs 63,140 crore.
They invested Rs 9,602 crore in Indian stocks in April, compared with Rs 20,077 crore in March, Rs 1,404 crore in February and Rs 714 crore in January.
Currently, there are 1,710 registered FIIs in the country, along with close to 6,404 sub-accounts.