Business
FPIs sell Rs 9,192 crore FAR bonds in September
Business Standard··29 Sept
Foreign portfolio investors sold Rs 9,192 crore of FAR government bonds in September so far, ending a five-month buying streak. It is the first monthly FAR selling since March, when outflows hit Rs 17,688 crore. FPIs net bought Rs 60,332 crore of FAR securities from April to August. Participants linked the shift to higher crude prices and firm US yields.
Prism
What It Means For You
- Overseas demand for fully accessible Indian government bonds flipped to net selling in September.
- Higher crude prices and firmer US yields are cited as the main near-term pressure on emerging-market debt.
- Earlier tax and FAR-basket measures did not fully offset the global risk-off move this month.
What's Happening
- FPIs pulled Rs 9,192 crore from FAR G-secs in September so far.
- April-August net buying totalled Rs 60,332 crore, including a June peak of Rs 41,774 crore.
- Treasury desks linked the reversal to West Asia tensions, Brent above $105, and deferred Bloomberg index hopes.
What had pulled money in
- An ordinance from June 5 retrospectively exempted foreign investors from tax on G-sec interest and capital gains from April 1, 2026.
- RBI also widened FAR to new 15-year, 30-year and 40-year issues.
- June's record inflow partly reflected reclassification of existing holdings into the FAR category.
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