If you thought foreign institutional investors (FIIs) will turn Uncle Scrooge in 2010 after

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putting in Rs 84,000 crore into Indian stocks in 2009, think again.

According to latest data from Securities and Exchange Board of India (Sebi), FIIs brought in stocks worth Rs 25,000 crore till date in calendar year 2010. There are around eight months still remaining in the year.

The bulk of FII net inflows in 2010 have come in after Pranab Mukherjee delivered a budget in February end, which FIIs have apparently liked. From a marginal net buyer position (Rs 716 crore) on February 26, FIIs are now big net buyers, having actually put in close to Rs 24,000 crore in the next 26 trading days up to April 13.

There are other indications of the faith shown in Indian stocks by FIIs. In the past five calendar years, when FII net investment was positive, inflows till mid-April accounted for around 33 per cent of inflows that came in during the whole year. By this count, FII inflows could potentially be much higher in 2010.

In 2007, FIIs put in Rs 8,541.6 crore till mid-April and Rs 71,486.50 crore for the whole 12 months. In 2006, they invested Rs 17,400 crore by mid-April and Rs 36,539.70 crore during the entire year. In 2005, FIIs inflows by mid-April stood at Rs 17,307.90 crore, which rose to Rs 47,181.20 crore in the whole year. The picture was similar for 2005 as well.

“Past data clearly suggests a strong correlation between returns in the stock market and fund flows from FIIs. In FY10, India received highest-ever FII inflows of $23 billion. True to form, Indian markets delivered one of the highest annual returns in the past 15 years. We remain positive on the prospects of FII inflows into India,” according to Motilal Oswal Securities.