APIs are betting big on India’s bond market, know how much they invested in February?
New Delhi/Sources: Foreign portfolio investors remain interested in India’s debt or bond market. An important reason for this is the decision to include Indian Government bonds in the Emerging Market Index of the largest American bank JP Morgan.
If we talk about this month or February, FPI has invested Rs 18.5 thousand crores in India’s bond market. At the same time, in January, FPI had invested more than Rs 19,836 crore in the bond market, which is the highest investment by FPI in any one month in the last 6 years.
The overall record for highest investment was made in June 2017, when foreign portfolio investors infused Rs 25,685 crore into the country’s bond market.
If we consider the first two months of 2024 i.e. January and February together, the total investment of FPI in the bond market has exceeded Rs 38,426 crore. Talking about the last three months of last year, FPI had invested Rs 18,302 crore in December, Rs 14,860 crore in November and Rs 6,381 crore in October.
JPMorgan had announced in September last year that it would include Indian government bonds in its benchmark emerging market index from June 2024. This was a historic step, which will help in bringing investment of 20 to 40 billion dollars in India during the next one and a half to two years.
If we look at the withdrawal figures, this month FPI has withdrawn about Rs 424 crore from the stock market. However, this is much lower than January, when foreign portfolio investors had pulled out a huge sum of Rs 25,743 crore.
FPI believed that the valuation of India’s stock market was high. Besides, they also saw more benefits in the rising yields on bonds in America. FPIs have sold the most in banking stocks. Goldman Sachs had downgraded the ratings of many banks, predicting poor performance of the banking sector in the near future.
