Out of the total investment, Rs 970.3 crore was in equity market and it was at Rs 119.2 crore in the debt market. Due to the aggressive buying by FIIs, the benchmark Bombay Stock Exchange (BSE) Sensex also moved up by 143.25 points during the same period. On January 4, FII made an investment of Rs 408.3 crore.

FIIs unwound a large part of their exposure in the capital market as they usually book profit during the year end. Apart from that, the FIIs were also selling heavily in the technology stocks as most of them were overvalued and on fears that the slowdown of US economy likely to adversely affect the domestic technology companies. Their focus was shifted from new economy to old economy stocks.

FIIs investments in debt market have also picked up after remaining at negative pale for most of the month in December. The rate cut by US Federal Reserve is expected to increase FII investment further in both the segments of the capital market, analysts said.

The Fed rate cut by 50 basis points which is aimed at arresting the recent slowdown is US economy would also boost the sentiment in the domestic markets. There has been profit-warnings from major US technology majors on the expectation of a slowdown in the US economy and this has been affecting the valuations of the domestic technology companies also.

The rate cut again shifted the focus of FIIs from the old to the new economy stocks.