During the first trading week of April, that is between 1 to 5 April, investors overseas have made investments worth Rs 8,634 crore in Indian markets signaling that positive market sentiments continue.
The data at the depositories showed that foreign portfolio investors (FPIs) had put in a net amount of Rs 8,989.08 crore in equities from 1 to 5 April 2019. However, they pulled out a net Rs 355.27 crore from the debt markets, making it an overall investment of Rs 8,634 crore in the capital markets.
In March, Rs 45,981 crore was pumped into capital markets by overseas investors.
Analysts feel that the positivity is induced by both domestic and global factors and expect the trend to continue for a while.
Despite the upcoming Lok Sabha elections, investors are expecting an improvement in the macro outlook of the country and predict a stable government to be formed at the Centre.
As for the external factors, the dovish stance on monetary policies by the US Federal Bank, European Central Bank (ECB) and Japan, the three major central banks in the world, have traders moving their bets to emerging economies like India.
Further, the monetary stimulus being implemented by the People's Bank of China has unleashed a gush of liquidity through FPI.