Foreign holdings in India bonds fall to over 4-month low
In short
Overseas investors sold a net 52 billion rupees of Indian bonds in October. Clearing house data showed that was after selling 106 billion rupees in September under the fully accessible route.
This matters because foreign holdings have dropped to an over four-month low. The report does not say why investors sold or whether the trend will keep going.
What the reporting says
Overseas investors sold a net 52 billion rupees of bonds under India’s fully accessible route in October, according to clearing house data. That followed net sales of 106 billion rupees in September and pushed foreign holdings to an over four-month low. The reporting does not say what triggered the selling or whether the outflow will continue.
Why it matters
Clearing house data showed overseas investors sold a net 52 billion rupees of bonds in October under India’s fully accessible route, after selling 106 billion rupees in September. The selling left foreign holdings at an over four-month low. The report does not explain the reason for the outflows, so the market implication is a weaker foreign bid for these Indian debt securities.