Foreign investors pumped in $3.4 billion in the capital markets so far this month, buoyed by expectations that BJP’s landslide poll victory is a precursor to “bold reformist policies” by the government.

The latest inflow follows a net investment of ₹15,862 crore in equity and debt last month. Prior to that, FPIs had pulled out a total of over ₹80,000 crore in October-January.

According to depository data, foreign portfolio investors (FPIs) infused a net sum of ₹17,124 crore in equities during March 1-17 and another ₹4,950 crore in the debt segment, translating into a combined inflow of ₹22,074 crore ($3.44 billion).

Investors believe that the government will continue with its bold reformist policies following a huge win for the NDA in UP and Uttarakhand, said Alok Agarwala, Bajaj Capital Senior Vice-President and Head Investment Analytics.