Foreign investors are attracted to Indian government bonds, have made such huge investments in February after January.

By Sudhakar Yadav February 11, 2024 12:43 PM IST
FPI- India TV Paisa
Photo:FILE foreign investors

Indian government Foreign investors have become interested in the bonds of Rs. Let us tell you that foreign portfolio investors (FPIs) have invested a net amount of more than Rs 15,000 crore in the country’s debt or bond market so far this month. Earlier, FPIs had injected Rs 19,836 crore into the bond market in January, which is the highest monthly figure in more than six years. Let us tell you that the reason for increasing attraction of foreign investors in the Indian market is the inclusion of Indian Government bonds in the JP Morgan index and the broadly stable scenario of the economy.

Big investment came after June 2017

Earlier in June 2017, FPIs had invested Rs 25,685 crore in the bond market. According to depository data, foreign portfolio investors have pulled out more than Rs 3,000 crore from stocks in the period under review. Earlier in January, he had made a huge withdrawal of Rs 25,743 crore from shares. VK Vijayakumar, chief investment strategist at Geojit Financial Services, said the main reason for this diverging trend in stocks and bonds is the high valuation valuations of the Indian stock market and rising bond yields in the US. Himanshu Srivastava, Associate Director-Manager Research, Morningstar Investment Research India, said that the main reason for withdrawal from stocks is uncertainty regarding the interest rate scenario in domestic as well as global markets.

Total investment increased to more than Rs 34,930 crore

According to the data, FPIs have invested a net amount of Rs 15,093 crore in the bond market this month (till February 9). With this, the total investment of FPI in 2024 has exceeded Rs 34,930 crore. Foreign investors have been continuously investing money in the bond market for the last few months. He invested Rs 18,302 crore in the bond market in December 2023, Rs 14,860 crore in November and Rs 6,381 crore in October.

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