FPI inflows hit record high on JPMorgan boost

Overall inflows from foreign investors have hit a record high of ₹2.74 trillion this fiscal year, chiefly due to front-loading of government bond purchases by global banks and traders.

- Ram Sahgal

This follows JP Morgan's decision to include Indian government bonds in its government bond index-emerging markets (GBI-EM) from June. Market experts say the move could attract $25 billion in inflows from passive trackers such as debt exchange-traded funds (ETFs) and index funds.

The break-up of net inflows this fiscal, as of 16 February, was 1.68 trillion into equity, ₹1.01 trillion into debt, a negative ₹0.06 trillion through the debt voluntary retention route (debt-VRR), and ₹0.11 trillion into hybrid instruments, including debt, equity and commodities such as gold, according to securities depository National Securities Depository Limited (NSDL).