FPIs turn net debt buyers ahead of index inclusion
Business Standard|May 29, 2024
10-year G-sec yield softens 20 bps in May so far
ANJALI KUMARI
FPIs turn net debt buyers ahead of index inclusion

May In a turnaround from April's selling spree, foreign investors are increasing their holdings in debt securities as the JP Morgan Index inclusion for Indian government bond approaches.

In May so far, foreign portfolio investors (FPIs) have pumped ₹7,427 crore into debt securities on a net basis, a significant shift from April when there was net selling of ₹11,218 crore.

"According to the schedule given by JP Morgan, the weighting will be increased by 1 per cent every month. So, passive investors will have to buy to reduce the tracking error of the index," said Naveen Singh, vice-president of ICICI Securities' primary dealership.

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