Foreign investors pumped in 1,215 Crore Rupees into the Indian debt market in the first week of April. This comes after a healthy investment of 35,000 crore rupees in equities in March and 1,539 crore rupees in February. In this calendar year, they have invested 10,568 crore rupees into the equity markets and 57,073 crore rupees into the debt markets, taking the total net investment into the Indian capital market to 67.641 crore rupees.

Indian government securities (G-Sec) 10-year yield has jumped to 7.1 per cent and the US 10-year to 4.3 percent. This is prompting the foreign investors to shift their focus from equities to the higher yields offered by bond instruments in the US and India. Moreover, FPIs are also heavily investing into the Indian debt markets for the past few months due to the upcoming inclusion of Indian government bonds in the JP Morgan Index. Last year, JP Morgan Chas, announced that it will add Indian government bonds to its benchmark emerging market index from June 2024.

FPIs invested 22,419 crore rupees in debt markets in February and 19,836 crore rupees in January.