Desk
Share
Foreign portfolio investors (FPIs) have invested Rs 11,336 crore in the Indian debt market so far in August. With this, foreign investment in the debt market has crossed the figure of one lakh crore since the beginning of the year 2024.
According to data from the National Securities Depository Limited (NSDL), FPIs have invested Rs 1,02,354 crore in the Indian debt market since the beginning of 2024. The debt market has so far received a foreign investment of Rs 11,366 crore in August, Rs 22,363 crore in July, Rs 14,955 crore in June, and Rs 8,760 crore in May.
Foreign investors are investing money in the debt market, but are withdrawing money from the equity markets. FPIs have withdrawn Rs 16,305 crore from the Indian equity markets since the beginning of August. The reason for this is believed to be the yen carry trade, fear of recession in the US, and tension in the Middle East.
However, since the beginning of 2024 till date, foreign investors have made a net investment of Rs 19,261 crore in the Indian equity markets.
The reason for the big purchases in the debt market by foreign investors is the inclusion of Indian bonds in the JP Morgan Emerging Market Bond Index in June this year. The weightage of Indian bonds in the JP Morgan Emerging Markets Bond Index will be 10 percent. The weightage of Indian government bonds will be gradually increased in this index in a phased manner from June 28, 2024, to March 31, 2025, i.e. by one percent every 10 months. Due to this, big investments are being seen in the Indian debt market.
