Friday, February 23rd, 2024

Foreign investors became interested in Indian bonds, 2 year record broken in November

Photo:FILE U.S. Dollar

Foreign Portfolio Investors (FPIs) has invested around Rs 12,400 crore in Indian bond markets so far in November. This is the highest investment in a single month in two years. The attractive yields on bonds in the country have increased the attraction of investors towards bonds. Market experts said the inclusion of Indian government securities in the JPMorgan Emerging Markets Government Bond Index has increased the participation of foreign institutional investors in the Indian bond markets. According to depository data, FPIs have been bullish on Indian bonds since the beginning of 2023. He has invested throughout the year except March.

Withdrawal of Rs 2,505 crore in March

In March he had withdrawn Rs 2,505 crore. According to the data, foreign investors invested a net amount of Rs 12,400 crore in the market this month (till November 27). This is the highest investment since Rs 12,804 crore was invested in September 2021. A net investment of Rs 6,382 crore was made in October. But Bhuvan Rustagi, chief operating officer (COO) and co-founder of Enum and Lendbox, said Indian bonds are relatively attractive compared to bonds in other emerging markets. It offers relatively higher yields compared to bonds from developed markets.

For this reason investors increased their investment

V.K., chief investment strategist at Geojit Financial Services. Vijayakumar said, “The larger than expected decline in inflation in the US in mid-October has given the market confidence that the US Federal Reserve will probably not raise the policy rate anymore. This has resulted in a sharp decline in US bond yields and the 10-year benchmark bond yield has declined from five per cent in mid-October to 4.40 per cent now.” Overall, the cumulative trend for 2023 remains good. So far in this financial year, FPIs have invested Rs 96,340 crore.

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