Foreign investors have pumped in nearly ₹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 ₹2,124 crore in the stock market, and ₹2,871 crore in debt securities, taking the total to ₹4,995 crore ($830 million) from May 2-9, according to 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 nine-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 the 23,000-mark on Friday before closing at 22,994.23 points.

The strong inflows in recent months has taken the net investment by FIIs to ₹33,923 crore in Indian equities so far this year and ₹ 29,217 crore in the debt market during the period taking the total to ₹63,140 crore.

They invested ₹9,602 crore in Indian stocks in April, compared with ₹20,077 crore in March, ₹1,404 crore in February and ₹714 crore in January.

Currently, there are 1,710 registered FIIs in the country, along with close to 6,404 sub-accounts.

(This article was published on May 11, 2014)
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