New Delhi: As an endorsement of the country’s new-found political stability and initiation of the reforms process, foreign institutional investors (FIIs) pumped in Rs 20,117 crore into the equity market in the month of May — the highest in 19 months.

“Post-elections, the concerns surrounding the reforms and growth story have been addressed, and we believe that most of the global emerging market funds that were underweight on India have increased their weightage, leading to an increased flow,” said Krishnamurthy Vijayan, chief executive officer, JP Morgan AMC. “We also believe that there will be strong flow of capital in India both from FDIs and FIIs.”

After the election results the FIIs have injected Rs 10,846 crore in 10 days of trading during which Sensex rose 20 per cent.

This confidence has helped drive up the market by 28.3 per cent in the month— the highest single-month gain by the Sensex since March, 1992 when it rose 55 per cent.

The high inflow of funds has also strengthened the rupee by 5.8 per cent, ending the month at Rs 47.3 to a dollar on May 29. It had closed the previous month at Rs 50.2, held on April 29.