Business · Markets · 6 hrs ago
Foreign investors add nearly ₹8,000 crore to Indian government bonds
Foreign portfolio investors added nearly ₹8,000 crore to Indian government bonds under India’s Fully Accessible Route in the first week of November.
Their holdings rose to ₹3.65 lakh crore on November 9, from ₹3.57 lakh crore on November 2.
Over the same period, the rupee strengthened against the US dollar, while the yield on India’s 10-year government bond fell to 7.178 per cent from 7.315 per cent.
Lower crude oil prices, foreign fund inflows and hopes of easing tensions in West Asia supported the rupee’s recovery.
The increase came after foreign investors sold government bonds for three months, amid concerns about global interest rates, currency swings and India’s inclusion in global bond indexes.
A stronger rupee can improve overseas investors’ dollar returns, while lower yields can raise the value of bonds they already hold.
The figures show a rise in holdings during that week, but no further move by investors is specified.
Foreign portfolio investors added about ₹7,969 crore to Indian government securities under the Fully Accessible Route in the first week of November.
Their holdings rose to ₹3.65 lakh crore on November 9 from ₹3.57 lakh crore on November 2, according to data compiled by PTI from the Clearing Corporation of India.
The increase coincided with the rupee strengthening against the US dollar and the yield on the 10-year benchmark government bond easing.
Softer crude oil prices, stronger foreign fund inflows and hopes of easing tensions in West Asia supported the rupee’s recovery.
- Who
- Foreign portfolio investors.
- What
- They increased their holdings in government securities under the Fully Accessible Route by around ₹7,968.782 crore.
- When
- In the first week of November, with holdings measured on November 2 and November 9.
- Where
- Indian government securities.
- Why
- The rupee strengthened and bond yields eased, improving the appeal of the securities to overseas investors.
This story does not have two clearly opposing sides.
FPI holdings in FAR government securities stood at ₹3.57 lakh crore, and the rupee was at 94.90 against the US dollar.
FPIs increased their FAR government securities holdings by around ₹7,968.782 crore.
Holdings reached ₹3.65 lakh crore, while the rupee was at 93.74 against the US dollar and the 10-year benchmark yield was 7.178 per cent.
- FPI holdings on November 9
- ₹3.65 lakh crore
- Increase in first week of November
- Around ₹7,968.782 crore
- FPI holdings on November 2
- ₹3.57 lakh crore
- Rupee on November 9
- 93.74 against the US dollar
- 10-year benchmark yield on November 9
- 7.178 per cent