Foreign investors are back in India's government bond market, investing ₹7,759 crore in November after pulling out ₹17,417 crore during September and October.
This turnaround is thanks to a stronger rupee, rising bond prices, and friendlier global financial conditions, basically making India's bonds look a lot more attractive right now.
India's 10-year yields down 22 bps
A big drop in 10-year government bond yields (down 22 basis points to 7.1898%) has made these bonds more appealing for investors.
Plus, cheaper Brent crude oil is easing worries about India's import costs.
The rupee getting stronger also boosts returns for foreign investors, though there are still some risks if the currency swings the other way or hedging costs go up.