Foreign institutional investors (FIIs) made a significant hike in their stake in top Indian companies to take it to a six-year high as of September 2012.

In its most recent report, released on Tuesday, Morgan Stanley said that FIIs hiked their stake in 75 top Indian companies by 1.4 per cent to a six-year high of 21.6 per cent as of September this year.

At the end of April-June 2012, FIIs stake in Indian companies was recorded at 19.3 per cent.

The Morgan Stanley report added that the newest figure is just shy of the record of FIIs' stake of 22 per cent recorded in mid-2005.

Most analysts see India as an attractive market with the SENSEX currently trading at a discount to its highest valuations of January 2008.

Saurabh Mukherjea, chief of equities at Ambit Capital, said, "India is the only large market with relatively more robust macroeconomic fundamentals than, say, other emerging economies such as China, Russia and Brazil."

As per the released figures, FIIs made net investments of Rs 40,000 crore in the whole Indian stock market during the three months to September 30. The huge investments by FIIs enabled Indian markets to rally by 1300 points during the quarter. Much of those investments were made in September, after the government opened multi-brand retail sector to FDI and hiked FDI limit in insurance.