PRESS TRUST OF INDIA
New Delhi, February 25
FOREIGN PORTFOLIO INVESTORS (FPIs) continued their bullish stance on the country's debt markets with a net infusion of over 18,500 crore so far this month, driven by upcoming inclusion of Indian government bonds in the JP Morgan Index. This came following a net investment of over 319,836 crore in January, making it the highest monthly inflow in more than six years. This was the highest inflow since June 2017, when they infused Rs 25,685 crore. "With introduction of India in global bond indices this year, Indian debt inflows should get steady flows going ahead. Also, further front-loading before actual inclusion in June this year is also expected. This is also in line with long term aim to deepen our under developed debt-markets," Kislay Upadhyay, small case Manager & Founder Fide lfolio, said. On the other hand, foreign investors pulled out 424 crore from equities during the period under review. Before this, they withdrew a massive X25,743 crore in January, data with the depositories showed. According to the data, FPIs made a net investment of 318,589 crore in the debt markets this month (till February 23).With this, the total investment by FPIs reached over X38,426 crore in 2024.They have been injecting money in the debt markets for the past fewmonths. FPIsinfused Rs 18,302 crore in the debt market in December, 14,860 crore in November, and 6,381 crore in October. The upcoming inclusion in JP Morgan EMBIGD in June 2024 is a major driver for the huge inflow in the debt market, Bhuvan Rustagi, CoFounder and COO, Per Annum and Lend box, said. Additionally, attractive yield, stable macroeconomic indicators and relatively stable rupee too attracted FPIs towards the debt market. JP Morgan Chase & Co. in September last year announced tha ti twilladd Indian government bonds to its benchmark emerging market index from June 2024.
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