NEW DELHI: Foreign investors have pumped in nearly 1,800 crore into Indian equities so far this month on good performance of the BJP in assembly elections which is likely to enhance the central government's ability to push through legislative reforms.

Interestingly, FPIs invested 341 crore into equities on May 19, the day assembly elections results were announced.

In March-April, Foreign Portfolio Investors (FPIs) had poured in 29,558 crore into the markets.

BJP coming to power in Assam for the first time and improvement in its seat tally in West Bengal and Kerala is likely to enhance the central government's ability to push through legislative reforms, said Shreyash Devalkar Fund Manager - Equities at BNP Paribas Mutual Fund.

The data sourced from the depositories showed FPI have invested 1,795 crore in the Indian stock markets so far this month.

However, foreign investors have pulled out 3,496 crore from the debt markets during the period under review.

Capital poured in by FPIs is often referred to as 'hot money' because of its unpredictability, although they continue to remain among the most important drivers of Indian stock markets.

This year, FPIs have invested 14,706 crore in equities while withdrawing 4,436 crore from debt market, resulting in a net inflow of 10,270 crore.

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