Foreign investors shift to Indian debt amid heavy equity outflows
Business
Foreign investors are switching gears, moving big money into Indian debt while pulling out from stocks.
In June 2026 alone, they put ₹41,773 crore into Indian debt but took out ₹49,340 crore from equities.
So far this year, debt investments are up by ₹51,178 crore, while equity outflows have reached a hefty ₹2.73 lakh crore.
Tax breaks, index hopes outweigh risks
This shift is mostly thanks to tax breaks on debt and hopes of Indian bonds joining Bloomberg's global index.
A stronger rupee and softening market yields make debt more appealing too.
Even though there are risks like US rate hikes and possible delays in index inclusion, the perks for investing in Indian debt seem to outweigh the downsides right now.