Sunday, January 2 2005 10:51 Hrs (IST) - World Time -

Mumbai: Riding high on the booming economy and growing attractiveness of India as an investment destination, FII investments in the country crossed $9 billion in 2004, the highest in the history of Indian capital markets.

The total net FII investments for the year upto December 29 stood at $9,072 million while foreign investors pumped in about $2,113 million in December, the highest inflow in the last twelve months, according to the Securities and Exchange Board of India (SEBI) data.

The FII investments began on a steady note at $850 million in January and inflows were $587 million in February 2004.

The inflows almost tripled to $1,418 million after the NDA (National Democratic Alliance) Government which were then favourites to return to power, reinforced its commitment to reforms in the Budget.

The flow continued in April with the FII's registering purchases in equity at $1,483 million.

However, Congress-led UPA (United Progressive Alliance) combine coming to power at the Centre and uncertainity over the disinvestment policy following statements by Left parties led to a scurry among foreign investors who resorted to panic selling in May and were net sellers at $806 million.