Mumbai: Inflows into the fully accessible route (FAR) securities for the month of January were at ₹5,229 crore or $604 million, slightly better than the inflows seen in December at ₹4862.9 crore, show data compiled from the Clearing Corporation of India (CCIL).
The inflows which had peaked at over ₹22,000 crore in August have tapered due to escalating US yields and a depreciating rupee making Indian government bonds less attractive to foreign portfolio investors, fixed income experts said.
The market will now be keenly watching the inflows after India is included in the Bloomberg Emerging Market local currency government index on January 31, traders said.
Index-eligible bonds saw outflows in October and November 2024, while inflows into these securities, even though sluggish, again started in December.
Fund managers do not anticipate significant inflows into index-eligible bonds, due to an uncertain global environment as assets…
