Foreign selling of Indian government securities halves in October
Debt outflows slowed by 49 per cent while net equity sales declined marginally, according to data from CCIL and NSDL.
Foreign portfolio investors (FPIs) reduced their selling of Indian assets in October, as debt outflows nearly halved and equity sales eased slightly, according to the Economic Times.
Data from the Clearing Corporation of India (CCIL) showed that FPIs sold ₹5,400 crore of government securities under the fully accessible route (FAR) in October, which was 49 per cent less than in September.
National Securities Depository (NSDL) data indicated that net equity sales declined by 3 per cent month-on-month to ₹34,843 crore.
Combined selling across FAR securities and equities fell 13 per cent to ₹40,243 crore in October from ₹46,390 crore in September.
Dhiraj Nim, economist and foreign exchange strategist at ANZ Bank, said outflows are sporadic and can occur in large chunks, cautioning against viewing the slowdown as a decisive turn in the investment cycle.
Tanay Dalal, senior VP of economic research at Axis Bank, said some recent inflows may reflect a view of India as an 'anti-AI' trade amid concerns over whether returns from artificial intelligence will justify substantial investments.