Mumbai: Overseas institutional investors have pumped in more than Rs 24,000 crore (USD 4.4 billion) in the Indian stock market in December, the highest in 10 months, taking total FII inflow for the year to over USD 24 billion.
In December, Foreign Institutional Investors (FIIs) were gross buyers of shares worth Rs 71,595 crore, while they sold equities amounting to Rs 47,412 crore. This translates into a net inflow of Rs 24,183 crore (USD 4.42 billion), according to market regulator SEBI data.
This is the highest net monthly investment by FIIs in stocks since February, when they had infused Rs 25,212 crore. Besides, this was highest net inflow in the month of December by FIIs since their entry into Indian capital markets in 1992.
After taking the latest inflows into count, FII investment in the country's equity market has reached Rs 1,27,455 crore (USD 24 billion) for the year 2012 with just one more trading session left.
Market experts believe that in absence of growth in the global economy, the Indian market continue to look attractive and hopes of a rate cut by the Reserve Bank of India (RBI) as early as January have made FIIs infuse funds in stocks.
"Foreign investors are pouring money into the Indian stocks in hopes of cut in interest rates by the RBI," CNI Research Kishor Ostwal said.
Destimoney Securities MD and CEO Sudip Bandyopadhyay said, "FIIs continued their positive stance on the Indian equities as the lack of investment options make the country an attractive destination."
Besides equities, FIIs invested Rs 1,178 crore in the debt market the month taking the year's tally to Rs 34,462 crore.
As on December 28, the number of registered FIIs in the country stood at 1,759 and total number of sub-accounts were 6,358 during the same period.