The FPI bullishness on election outcome can be seen from the fact that in the seven trading days of May following the general election result outcome on May 23, they pumped in a net of Rs 12,398 crore.
Currently, the FPI limit for general category G-sec investors stands at Rs 1.91 lakh crore; this has been raised to Rs 2.07 lakh crore for the first half of FY19 and further to Rs 2.23 lakh crore for H2FY19.
With equities markets world over witnessing unprecedented investment in the last one month or so, experts say stocks seem to be emerging as the most attractive asset class, especially in India, on the back of growth making a comeback.
Among the emerging markets (EMs), India witnessed highest outflow in August, followed by South Korea which saw an outflow of $1.12 billion during the month. FPI sales in Taiwan and Indonesia are relatively smaller, where foreign investors sold $258 million and $351 million, respectively.