JOIN US Investments by Foreign Institutional Investors (FIIs) in the Indian stock market have crossed Rs 1 lakh crore so far in 2012, marking a huge turnaround from net outflows reported in 2011.
FIIs were bought equities worth Rs 5.94 lakh crore and sold Rs 4.91 lakh crore. Thus, they were net buyers of equities worth Rs 1.03 lakh crore or $19.78 billion, according to data provided by capital market regulator Securities and Exchange Board of India (Sebi).
This is the second highest net inflow by FIIs in a single calendar year since their entry into Indian capital markets in 1992. In 2010, FIIs had made net investment of Rs 1.33 lakh crore ($29 billion at then prevailing forex rates). FIIs had pulled out Rs 2,714 crore in 2011. The surge in investments is attributed to a series of reforms initiated by the government, pushing up the broader market Sensex by about 25 per cent so far in 2012.
However, the pace of investment has been slowed. In September, overseas investors infused Rs 19,261 crore in the stock market, followed by Rs 11,364 crore in October and Rs 9,577 crore in November.