FPIs Again Turn Net Buyers of Govt Securities in Dec

FPI investments (₹ lakh cr)

- ANUPREKSHA JAIN

AFTER TURNING NET sellers of government bonds under the fully accessible route (FAR) for the first time since India's inclusion in the JP Morgan Global Market Index - Emerging Suite in November, foreign portfolio investors (FPIs) have again turned net buyers in December.

FPIs increased their positions held under the fully accessible route to ₹2.51 lakh crore against ₹2.43 lakh crore a month ago.

The appointment of the new governor of the Reserve Bank of India has boosted the expectations of a rate cut in February.

This prompted foreign investors to take a positive view on the government bond market despite the rupee being under pressure.

The new RBI governor, Sanjay Malhotra, is perceived to be dovish in his approach; therefore, the market is confident about India going for a rate cut in February, said traders.