In the month of August so far, foreign investors infused Rs 11,366 crore in the Indian debt market, pushing the net inflow tally in the debt segment to over the Rs 1-lakh-crore mark.
As per the data with the depositories, Foreign Portfolio Investors (FPIs) injected Rs 11,366 crore in the debt market this month, till August 24.
With the latest flow, FPIs net investment in debt has reached Rs 1.02 trillion in 2024 so far.
This inflow came following a net investment of Rs 22,363 crore into the Indian debt market in July, Rs 14,955 crore in June and Rs 8,760 crore in May. In April, FPIs pulled out Rs 10,949 crore.
Foreign investors’ strong buying interest in the Indian debt market can be attributed to India’s inclusion in JP Morgan’s Emerging Market government bond indices in June this year.
As per the analysts, ever since the announcement of India’s inclusion came in October 2023 year, FPIs have been front-loading their investments in Indian debt markets in anticipation of the inclusion in global bond indices.
In terms of outflow, in August, FPIs pulled out over Rs 16,305 crore from equities due to unwinding of the Yen carry trade, recession fears in the US and ongoing geopolitical conflicts.
In terms of sectors, FPIs were big sellers in financials in India in the first fortnight of August.