MUMBAI: Foreign investors have infused $3.4 billion in the Indian stock market so far in the running month, taking the total inflow for 2012 to $23 billion.
During December 3-21, foreign institutional investors (FIIs) were gross buyers of shares worth Rs 57,024 crore and sellers of equities worth Rs 38,644 crore - translating into a net inflow of Rs 18,380 crore ($3.4 billion), as per the data released by SEBI.
The net investment by FIIs reached to $23.15 billion (Rs 1,21,652 crore) so far in 2012, making it the highest-ever inflow during the last two years and the second-highest in any calendar year, since their entry into Indian capital markets in 1992.
In 2010, overseas investors had made net investments of close to $29 billion (about Rs 1,33,266 crore). FIIs, a major participant in Indian stock market, had pulled out a net $358 million (Rs 2,714 crore) in 2011.
According to Market experts, the recent reforms initiatives undertaken by the government to boost economic growth and investor sentiment have seen renewed interest by foreign investors.
Further, global investors have infused Rs 493 crore ($94 million) in the debt market so far this month. In 2012, so far, FIIs total investment into the debt market stood at Rs 33,777 crore ($6.42 billion).
In November 2011, overseas investors had poured in Rs 9,577 crore in stock marke, Rs 11,364 crore in October and Rs 19,261 crore in September, respectively.