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 (USD 3.4 billion), according to Sebi data.

This takes the net investment by FIIs to USD 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 about USD 29 billion (about Rs 1,33,266 crore). FIIs, a major participant in Indian stock market, had pulled out a net USD 358 million (Rs 2,714 crore) in 2011.

Market experts believe the recent reforms initiatives undertaken by the government to boost economic growth and investor sentiment have seen renewed interest by foreign investors.

"FIIs continued their positive stance on the Indian equities as the lack of investment options make the country an attractive destination," Destimoney Securities MD and CEO Sudip Bandyopadhyay said.

Besides, Indian market has attracted the highest amount of foreign flows compared with Asian peers so far," he added.

Moreover, overseas investors have infused Rs 493 crore (USD 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 (USD 6.42 billion).

Foreign investors have been betting big on Indian equities and infused over Rs 40,000 crore in the last three months on the back of a slew of economic reforms initiated by government, pushing up BSE benchmark Sensex by about 25 per cent in 2012 calendar year.