Foreign investors are returning to India's sovereign bonds, particularly those eligible for global index inclusion, as they anticipate a more accommodative stance from the Reserve Bank of India (RBI).

In the span of just four days this month, global funds have invested 64.72 billion rupees (approximately $764 million) in Fully Accessible Route bonds. This influx of capital has already exceeded the previous month's outflow of 51.87 billion rupees, which marked the first monthly withdrawal since India was added to JPMorgan Chase & Co.'s index in June.

The renewed interest from overseas investors reflects a change in sentiment towards Indian debt, driven by growing optimism about liquidity support from the central bank.