The hefty FII inflows have not resulted into a upward movement in the broader market with the Sensex down about 200 points, or 1.2% so far in the month

New Delhi: The investment by overseas investors into Indian stock market since the beginning of 2012 is set to cross the $10 billion level, out of which more than $1 billion were pumped in the first two weeks of July, reports PTI.

The total investment so far in 2012 by foreign institutional investors (FIIs) in to the Indian equity market to $9.82 billion (Rs49,349 crore), according to data available with capital market regulator, the Securities and Exchange Board of India (SEBI).

It seems foreign investors are reversing their bets on Indian equity market as after pulling out funds for the past three consecutive months, they have again infused $1.3 billion (about Rs7,356 crore) so far in July so far.

However, the hefty inflows have not resulted into a upward movement in the broader market with the Sensex down about 200 points, or 1.2% so far in the month to close at 17,430 points on Friday.

FIIs had pulled out Rs1,957 crore from equities in April-June quarter this year, in contrast to a whopping Rs44,000 crore investment in stocks in the previous quarter.

The nearly Rs2,000 crore outflow was mainly due to concerns of economic growth and depreciating rupee, say analysts.

They attributed the change of guard at Finance Ministry having prompted foreign investors to re-consider Indian equity market for investment purposes.

With the Prime Minister Manmohan Singh taking additional charge of the finance portfolio, investors are hopeful that the Prime Minster would take steps to revive the economy.

"The FII movement is partly because of fundamental factors and some optimism generated as the PM taking over as Finance Minister. Besides, potential implications of GAAR are also being seen as a very big positive. This inflow would sustain when all the policy talk translates into action," a stock broker said.

During 3rd July to 13th July, FIIs were gross buyers of shares worth Rs24,626 crore, while they sold equities amounting to Rs17,270 crore, translating into a net investment of Rs7,356 crore ($1.3 billion).

The foreign fund houses also infused Rs1,724 crore ($309 million) in the debt market so far this month. This takes the overall net investments by FIIs into debt markets to Rs22,585 crore ($4.32 billion) so far this year.

FIIs had mostly stayed away from Indian equities in 2011.

They flocked towards the debt market last year with a net investment of Rs20,293 crore, while pulling out Rs2,812 crore from equities.

As on 13th July, the number of registered FIIs in the country stood at 1,754 and total number of sub-accounts were 6,358 during the same period.