FPIs sell $1.3 billion in debt during February

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Published: March 2, 2019 2:06:12 AM

They utilised 70.79% of their Rs 2.9 lakh-crore investment quota in corporate bonds till February 28.

The rupee, which was ruling at 69.4350 to the dollar on January 1, depreciated to 70.9113 on Friday, partly due to sales by FPIs in the bond market.

Foreign portfolio investors (FPIs) were net sellers in the bond markets in February, pulling out over $1.3 billion during the month.
FPIs sold debt worth of $470.52 million on last day of February because of various domestic and global concerns.
In January, FPIs sold bonds worth $369.85 million. In 2018 they had sold $5.9 billion worth of bonds.
The rupee, which was ruling at 69.4350 to the dollar on January 1, depreciated to 70.9113 on Friday, partly due to sales by FPIs in the bond market.

“Amid the situation of border tensions, investors from overseas are not sure of the course of these events and its impact on the currency side. Secondly, increasing crude prices and attractive opportunities from emerging markets to generate better returns with lesser volatility have also shifted the focus of FPIs from India,” said Ajay Manglunia, head of fixed income markets at Edelweiss Securities.
In February, FPIs utilised 67.81% of their investment quota of `2.2 lakh crore in the central government securities.
They utilised 70.79% of their `2.9 lakh-crore investment quota in corporate bonds till February 28.

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