FPI inflows in debt market at nine-year high of ₹1.21 lakh crore in FY24; likely to help soften bond yields

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Key Points

The Foreign Portfolio Investors (FPIs) have infused more than 1.21 lakh crore in Indias debt market during the financial year 2023-2024, the highest yearly inflow in more than nine financial years..

As per the data on National Securities Depository Ltd (NSDL), FPIs net investment in the countrys debt markets stood at 121,059 crore for FY24..

FPI inflows in the debt market gathered steam in H2FY24 amid the announcements of the inclusion of Indian bonds in various global bond indices..

Last month, the Bloomberg Index Services said it will also include 34 Indian government bonds eligible for investment via the country's fully accessible route (FAR) in its Emerging Market Local Currency Index from January 31 next year..

Overall, the total FPI flows into Indian capital markets for FY24 was at 3.39 lakh crore, including equities, debt, debt VRR and hybrid investments. ..

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