Mumbai: FII investment in Indian equities so far this month has touched a staggering over 13,000 crore (about $2.5 billion) on the back of postponement of the controversial GAAR ( General Anti Avoidance Rules) by two years and partial deregulation in diesel prices.
In 2012, FIIs had made net investment of 1.28 lakh crore ($24.4 billion) in Indian equities, making it the second best year for the market after record inflow of 1.33 lakh crore ($29 billion) in 2010.
Market analysts attributed huge inflows into Indian equities to steps taken by the government including the postponement of the implementation of the GAAR by two years to April 1, 2016 and partial decontrol in diesel prices.
Another major reason was passage of 'fiscal cliff' bill by the US Senate that delays the automatic spending cuts by two months and proposed raising of taxes on individuals earning more than $400,000 a year and households making more than $450,000.
However, FIIs have pulled out 563 crore ($101 million) in the debt market in 2013. This takes the total investment tally into the stock and bond to 12,838 crore ($2.34 billion)
The strong inflow by FIIs have pushed up Sensex by 612 points, or 3.15 per cent, so far in the year to settle at above 20,000 mark.
As on January 18, the number of registered FIIs in the country stood at 1,759 and total number of sub-accounts were 6,315.