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Foreign portfolio investors (FPI) invested Rs 43,838 crore in the Indian stock markets in May.

V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said the FPIs were aggressive buyers in the market in May having invested Rs 43,838 crore through the stock market and primary market put together.

A survey among foreign portfolio investors showed that India is now the consensus overweight among all emerging markets. In May, India attracted the largest investment among all emerging markets, and FPIs were sellers in China, he added.

FPIs are likely to continue their investment in India in June too since the latest GDP data and high frequency indicators reflect a robust economy gaining further strength. Financials, automobiles, telecom and construction are attracting big investments, he said.

Nifty racing to the all-time high of 18887 and breaking the record are highly possible in the next few trading days. But at record levels, selling pressure is likely since valuations will emerge as a concern, he said.

Joseph Thomas, Head of Research at Emkay Wealth Management, said the the equity market has been holding quite well buoyed by the better than expected national income data, encouraging manufacturing PMI, and finally, a closure to the US debt ceiling discussions.

The positive sentiment created by these events may linger on for some more time.

However, in the immediate term one should be cognizant of the high probability for exports to slowdown with almost all auto companies reporting a decline in the exports component, and a slowdown in FPI flows if the strength in the US unit endures, he said.