Worst Outflows Since JPM Index Inclusion Hit Bonds

FOREIGN FUNDS CUT their holdings of India's index-eligible sovereign bonds by the most in a year, making it the biggest outflow after the nation's debt joined a JPMorgan Chase & Co gauge in June.

- BHASKAR DUTTA

Overseas investors' aggregate holdings of the fully accessible route, or FAR, bonds fell by ₹11,100 crore ($1.3 billion) to ₹2.95 lakh crore in April, Clearing Corporation of India data showed, as global market volatility on US tariff concerns eroded the risk appetite.

Withdrawals indicate profit booking by investors after a sharp rally in the debt and a stronger rupee. In contrast, foreign investors are returning to India's stocks as the country stands out among peers due to its better economic outlook and relatively smaller impact on trade.