So far in the month of August, foreign investors have pumped Rs 11,366 crore into the Indian debt market, taking the net inflow in the debt segment to over Rs 1 trillion.

According to depository bank data, foreign portfolio investors (FPIs) pumped Rs 11,366 crore into the debt market this month up to August 24.

With the latest inflow, FPI net investment in debt has reached Rs 1.02 trillion so far in 2024.

This inflow came after a net investment of Rs 22,363 crore in the Indian debt market in July, Rs 14,955 crore in June and Rs 8,760 crore in May. In April, FPIs withdrew Rs 10,949 crore.

The strong buying interest of foreign investors in the Indian debt market is due to India’s inclusion in JP Morgan’s emerging market sovereign bond indices in June this year.

According to analysts, FPIs have been frontloading their investments in Indian debt markets since the announcement of India’s inclusion in global bond indices in October 2023.

In terms of outflows, FPIs withdrew over Rs 16,305 crore from the equity sector in August due to unwinding of yen carry trade, recession fears in the US and ongoing geopolitical conflicts.

At the sector level, FPIs were the top sellers in the Indian financial sector in the first half of August.