Government Debt in Focus as India Debt Market Attracts FPIs
Saturday, 17 August 2024, 09:04
Government Debt Dominates as FPIs Drive India Debt Market Growth
The debt market in India has reached a critical milestone, as Foreign Portfolio Investors (FPIs) net investments have crossed the significant ₹1 lakh crore mark in 2024. This remarkable achievement underscores the increasing allure of government debt amidst shifting market dynamics.
FPIs and Their Impact on the Bond Market
- FPIs play a pivotal role in shaping the bond market.
- With substantial capital inflow, they influence interest rates and liquidity.
- Despite the focus on bonds, FPIs have been aggressive sellers in the stock market.
What Drives FPIs to Favor Indonesia Debt Market?
- Stable economic policies attract foreign portfolio investments.
- The India debt market offers competitive yields.
- Investors seek safer alternatives amid equity volatility.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.