FPIs pour ₹10,000cr into Indian bonds after policy changes
Over the past four trading sessions, foreign portfolio investors (FPIs) have put nearly ₹10,000 crore into Indian bonds.
This sudden boost comes right after the government announced a full exemption on taxes on gains from certain debt investments, and the Reserve Bank of India (RBI) made it easier for foreigners to invest in a wider range of Indian bonds.
The result? Bond yields dropped, signaling that investors are feeling pretty good about India's debt market.
Earlier daily sell-offs by FPIs reversed
Not long ago, FPIs were pulling money out: over ₹10,000 crore left since the start of the US-Israel war on Iran. Daily sell-offs had become the norm.
But with these new policy moves from the government and the RBI, foreign investors are now coming back in strong and turning market sentiment around.