FPIs bet Rs 12,399 crore on debt this month, most in over 2 years

Foreign portfolio investments in the domestic debt market hit a 27-month high in November, following the announcement that India will be included in JP Morgan’s widely followed Government Bond Index-Emerging Markets (GBI-EM) from June next year.

FPI debt inflows stood at Rs 12,399 crore on November 26, up from Rs 6,382 crore in October, according to data from the National Securities Depository Limited (NSDL).

“The reason is the inclusion of bonds,” explains Vikas Goel, managing director and CEO of PNB Gilts. “Speculative flows have started. Aggressive buying has started now, but in the new year, i.e. January, serious flows or larger quantities will start.”