According to the latest depositories data, foreign portfolio investors (FPIs) withdrew a net sum of ₹2,048 crore from equities and ₹2,309.86 crore from the debt market during 2-24 May, taking the total net outflow to ₹4,375.86 crore.
"However, it is noteworthy that foreign investors pumped in money on the day of election results as the mandate became clear," said Vidya Bala, Head - Mutual Funds Research at FundsIndia.
FPIs invested a net ₹1,352.20 crore in equities on 23 May , when the ruling BJP scored a thumping victory in the general elections.
"While FPIs may remain cautiously optimistic on what the government will deliver in a second term, neglected cyclical segments from banks to capital goods to infrastructure-related plays may see increased interest from institutional investors," Bala added.
Kaustubh Belapurkar, Director - Manager Research, Morningstar Investment Adviser India, said, "The exit poll indications followed by the actual emphatic BJP victory has certainly enthused foreign investors. With a strong government at the Centre, we expect FPIs will be watching India more keenly amongst the emerging markets pack."