Inflo for the first time in the bond market by foreign investors

Mumbai, Ta. 20 October 2020, Tuesday

For the first time in the first seven months of the current financial year, the country's debt market saw an inflow of Rs 3.50 crore in foreign investors' bonds in September. Inflows have also been seen in other debt markets in Asia.

In September, foreign investors poured 1 billion into Asian government and corporate bonds. This is due to higher yields and signs of economic recovery.

Inflation in debt means that foreign capital inflows are turning to India again, an analyst said. Foreign investors, who are currently avoiding further easing of monetary policy by the Reserve Bank to curb rising inflation, have the opportunity to get relatively high returns on government bonds.

The RBI's next review meeting has the potential to reduce the repo rate, which could lead to lower yields on lending instruments, an analyst said.

Foreign investors in India are getting higher returns on credit instruments compared to the world's leading countries. On the other hand, foreign investors started selling in the Indian stock market during September last year. Last month, they traded at Rs. 1901.5 crore. Against him Rs. 1,412.09 crore was sold. Thus, in September, they raised Rs. 11610.5 crore were withdrawn.

If we look at the activities of foreign investors in the current month of October, Dt. By October 15, they had traded at Rs. 312.15 crore. Against him Rs. 2.5 crore has been sold. Thus their total net investment is Rs. 2.50 crore.