Foreign investors have been buying Indian government bonds at a significant rate, acquiring over Rs 90 billion in the last four sessions. This increase in purchases comes after disappointing economic growth data, which has raised expectations for potential monetary policy easing by the Reserve Bank of India.
A substantial portion of these purchases is linked to JPMorgan's debt index. In contrast, foreign investors were actively selling bonds in November due to elevated U.S. yields and uncertainty surrounding the Federal Reserve's monetary policy after Donald Trump's presidential election victory.
At one point, net selling in Fully Accessible Route bonds exceeded Rs 100 billion, reflecting cautious sentiment among investors during that period.