New Delhi, June 2 -- Improved domestic fundamentals, rising corporate earnings, and a weaker US dollar kept foreign investors bullish on Indian stocks for the second straight month in May, cementing India's position as Asia's favoured equity market.

In May, FPIs bought Indian stocks worth Rs.19,686 crore through the exchanges, marking the highest monthly inflow since September, when they had pumped in nearly Rs.50,000 crore. FPIs turned into net buyers in April by infusing Rs.4,223 crore, according to the depositories data.

Before this, foreign portfolio investors (FPIs) had pulled out Rs.3,973 crore in March, Rs.34,574 crore in February, and a substantial Rs.78,027 crore in January.

Domestic institutional investors also remained net b...