Gross equities bought by foreign investors stood at Rs 42,035 crore till March 14, 2014, while gross equities sold by them was Rs 36,967 crore, leading to a net inflow of Rs 5,068 crore, data from the capital market regulator, the Securities and Exchange Board of India (SEBI) showed.
Overseas investors also pumped in Rs 14,140 crore into the debt market till March 14, 2014, data showed.
A shrinking current account shortfall, easing inflationary pressures and the government's commitment to rein in spending has reinforced hopes that Asia's third biggest economy will return to above 5 per cent growth levels in the near-term.
At the same time, FIIs are betting that the next government at the centre may bolster reforms and economic growth, booting overseas investment into the country.
Indian Finance Minister P Chidambaram recently said that the Indian economy was more stable now than one and a half years ago while the fiscal and current account deficits were under control.