FPIs’ $5bn bond purchase offsets steady equity sales

MUMBAI: Foreign portfolio investors turned net buyers in June after months of sustained outflows, as a surge in sovereign debt inflows offset continued equity selling and pushed overall flows into positive territory.According to data, June recorded net inflows of $531 million, marking the first positive monthly print after a prolonged phase of withdrawals. This was…

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FPIs' $5bn bond purchase offsets steady equity sales

MUMBAI: Foreign portfolio investors turned net buyers in June after months of sustained outflows, as a surge in sovereign debt inflows offset continued equity selling and pushed overall flows into positive territory.According to data, June recorded net inflows of $531 million, marking the first positive monthly print after a prolonged phase of withdrawals. This was despite net sales of $5.2 billion worth equity during the month.The bulk of the capital gravitated toward the debt-general limit segment, which captured a significant $3.2 billion net inflows. This was closely supported by the fully accessible route (FAR), which pulled in $2.2 billion, reflecting robust international appetite for uncapped, designated govt securities structured for global bond index inclusion. Meanwhile, the voluntary retention route (VRR)-a specialised channel granting operational flexibility in exchange for committing capital over a fixed retention period-recorded a more modest but positive net inflow of $341 million. Collectively, these three streams propelled the total debt inflows to a substantial $5.8 billion.



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