Mumbai, March 19 : Foreign Institutional Investors (FIIs) have pumped in Rs 23,000 crore this month so far, aiding the rupee to gain over 2 per cent against the US dollar over upbeat investor sentiments.
The healthy inflow of foreign funds during March 2019 comes second just to the inflow of Rs 26,473.17 crore seen in March 2017.
Institutional investment from abroad is especially significant as it is not only fruitful for currency but also for the equities.
Experts have said that foreign investors have turned bullish on the Indian markets owing to the expectation that a stable government will be iin place after the general election.
Riding on the same, the equities have logged strong gains, inching close to fresh highs.
Among other reasons giving a boost to the investor sentiments are the crude oil prices which have been stable, hence inflation is expected to remain benign.
Rushabh Maru Research Analyst Anand Rathi said the rupee continues to remain on appreciating mode due to FIIs' inflow in the debt and equity market.
"On the other hand, the Federal Reserve's patient approach to raise interest rates have improved sentiments.
On the other hand, the market is expecting the NDA government to return to power after the election. Hence all these factors are supporting the rupee," said Rathi.