India's Domestic Debt Market Surges As Foreign Portfolio Investments Reach 27-Month High In November, Hits Rs 12,399 Crore

In a significant uptick, foreign portfolio investments (FPI) in India's domestic debt market surged to a 27-month high in November.

The boost is attributed to the announcement of India's inclusion in JP Morgan's Government Bond Index-Emerging Markets (GBI-EM) from June next year, reported Business Standard.

Data from the National Securities Depository Limited (NSDL) revealed FPI inflows in debt reaching Rs 12,399 crore as of 26 November, marking a notable increase from Rs 6,382 crore in October.

Vikas Goel, managing director and chief executive officer at PNB Gilts, attributed this surge to the anticipation of bond inclusion.

He stated, "speculative flows have started. Aggressive buys have begun, but substantial flows or larger amounts are expected to kick in from the new year, particularly in January."

The move to include India in JP Morgan's widely tracked GBI-EM is seen as a positive development, attracting increased foreign investor interest and bolstering the country's standing in the global debt market.

This influx of investments is expected to contribute to the growth and stability of India's financial markets.