New Delhi: Foreign investors pumped in $3.4 billion in the capital markets so far this month, buoyed by expectations that BJP's landslide poll victory is a precursor to "bold reformist policies" by the government.For latest news on Business, like us on Facebook and follow us on Twitter.
The latest inflow follows a net investment of Rs 15,862 crore in equity and debt last month. Prior to that, FPIs had pulled out a total of over Rs 80,000 crore in October-January.
According to depository data, foreign portfolio investors (FPIs) infused a net sum of Rs 17,124 crore in equities during March 1-17 and another Rs 4,950 crore in the debt segment, translating into a combined inflow of Rs 22,074 crore ($3.44 billion).
Investors believe that the government will continue with its bold reformist policies following a huge win for the NDA in UP and Uttarakhand, Bajaj Capital Senior V P and Head Investment Analytics Alok Agarwala said.
"This decisive win in the largest state by population (UP) is positive for FPI sentiment and resulted in higher FPI inflows as overseas investors get more bullish about the continuance of the reforms process in the country," he explained.
Geojit Financial Services Chief Market Strategist Anand James said: "The prospects of a gradual US rate hike look to have improved the risk appetite. This should also mean, save a negative surprise from monsoon forecast, Q4 numbers should prompt investors to be forward looking."
So far this year, FPIs have invested Rs 25,850 crore in equities and Rs 8,591 crore in debt, taking the total inflow to Rs 34,441 crore.
(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)