November saw a two-year high of Rs 12,400 crore in debt market investments from FPIs

 November saw a two-year high of Rs 12,400 crore in debt market investments from FPIs

November saw a two-year high of Rs 12,400 crore in debt market investments from FPIs

The report shows that till November 27, foreign investors made net purchases of Rs 12,400 crore in the debt market. Since September 2021, when they invested Rs 12,804 crore, this was the largest inflow.

During the review period, FPIs made net investments of Rs 378 crore in equity markets, excluding stocks.

Due to the alluring returns that the nation's debt offers, foreign portfolio investors (FPIs) have invested approximately Rs 12,400 crore in the Indian debt markets as of November 1st, the biggest amount in over two years. According to industry analysts, foreign investors' involvement in the Indian bond markets has increased since Indian G-Secs were included to the JPMorgan Government Bond Index Emerging Markets.

FPIs have been investing in Indian debt since the beginning of 2023, with the exception of March, when they withdrew Rs 2,505 crore, according to depository data. With the most recent inflows, FPIs have now invested a net total of Rs 47,900 crore in debt this year. The report shows that till November 27, foreign investors made net purchases of Rs 12,400 crore in the debt market. Since September 2021, when they invested Rs 12,804 crore, this was the largest inflow. This follows an October net investment of Rs 6,382 crore.

However, in contrast to debt in other developing economies, Indian debt is more appealing and delivers greater rates than debt in established nations, according to Bhuvan Rustagi, COO and co-founder of Enum and Lendbox. During the review period, FPIs made net investments of Rs 378 crore in equity markets, excluding stocks. This occurred as a result of FPI sales of stocks valued at Rs 14,767 crore in September and Rs 24,548 crore in October."The US inflation rate declined more than anticipated in mid-October, which gave the market the impression that the Fed had increased interest rates. US bond rates therefore dropped precipitously, with the benchmark 10-year bond The chief investment strategist of Geojit Financial Services, VK Vijayakumar, said, "The yield has decreased from 5% in mid-October to 4.4% now." FPIs were compelled by this to reduce their sales volume." All things considered, the cumulative trend for 2023 is still positive, with FPI investments totaling Rs 96,340 crore so far this year.