Foreign investors are betting big on India at a time when the government has kickstarted its divestment programme and the primary market is also showing early signs of revival. The cumulative inflow from foreign institutional investors (FIIs) in 2012 has crossed $20-billion mark — the second-highest in 14 years.
Interestingly, the last six trading sessions have seen FIIs putting in $1 billion in Indian equities.
Data also show that Indian markets attracted the highest amount of foreign flows compared with its Asian peers so far. South Korea stood second with inflows worth $11.8 billion since January, followed by Japan ($7.8 billion), the Philippines ($2.2 billion) and Taiwan ($3.5 billion), Thailand ($1.8 billion) and Indonesia.
FII flows into India were the highest in 2010 when they were net buyers at $29.32 billion. Last year, meanwhile, India saw an outflow of $512 million by foreign institutions.
Further, data showed that FIIs have pumped in $2 billion in November compared with $1.96 billion in October, $3.84 in September, and $1.73 billion in August.
Month-wise data indicated that February witnessed the highest inflow this year ($5.13 billion).