The outflow of FIIs from debt instruments is the highest in two decades

Mumbai, Ta. 24 December 2020, Thursday

The number of foreign institutional investors (FIIs) withdrawing from the domestic debt market in the current year is the highest in the last two decades. In the current year, FIIs have sold સાધનો 13.60 billion in net worth of debt instruments, the highest since 19, according to the data.

In 2012, the net inflows in debt instruments stood at 4.5 billion. The sell-off was due to an uncertain outlook for the Indian rupee, an analyst said.

FIIs seem to be increasing investment in US dollars by withdrawing money from India's debt instruments. The rupee depreciated against the dollar to a low of 7.50 in 2020 as the Corona epidemic affected most of the asset classes. The rupee has depreciated by 9 per cent this year and is the weakest currency in Asia.

Sources further said that foreign investors were also selling due to the decline in yields on credit instruments.


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