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Foreign portfolio investors (FPIs) have invested Rs 8,794.743 crore in government securities under the Fully Accessible Route (FAR) after the government exempted them from income tax on interest income and capital gains arising from investments in these bonds. According to data from the Clearing Corporation of India Ltd (CCIL), FPI holdings in FAR securities stood at Rs 3.32 lakh crore on Tuesday, up from Rs 3.23 lakh crore on June 3. FAR allows non-resident investors to invest in specified Government of India dated securities without any investment ceilings. "We can see the optimism from FPIs who nearly invested 75 per cent of the net purchase in G-secs under FAR category recorded during April & May. It also strengthens India's case for inclusion in major global bond indices, such as Bloomberg's sovereign bond index, whose inclusion decision was deferred earlier this year," said Mataprasad Pandey, vice-president at Arete Capital. The government on June 5 promulgated an ordinance
Foreign investors continued their relentless sell-off in Indian equities, pulling out Rs 60,847 crore (USD 6.5 billion) in April primarily due to escalating geopolitical tensions and global macroeconomic uncertainties that dampened risk appetite. With the latest withdrawal, total outflows by Foreign Portfolio Investors (FPIs) have surged to Rs 1.92 lakh crore in the first four months of 2026, significantly exceeding the Rs 1.66 lakh crore outflow recorded in the entire calendar year 2025, according to NSDL data. FPIs remained net sellers in all months of 2026 except February. They withdrew Rs 35,962 crore in January, followed by an infusion of Rs 22,615 crore in February, the highest monthly inflow in 17 months. However, the trend reversed sharply in March, with a record outflow of Rs 1.17 lakh crore, and continued into April, with withdrawals of Rs 60,847 crore, the data showed. Market participants attributed the sustained selling pressure to a mix of global macroeconomic headwind
Foreign portfolio investors have pulled out Rs 17,689 crore of their bets from Fully Accessible Route (FAR) government securities since the beginning of the conflict in Middle East, reflecting heightened risk aversion among the global investors and growing concerns over inflationary pressures linked to surging crude oil prices. According to data from the Clearing Corporation of India (CCIL), FPI investment in FAR government securities declined to Rs 3,13,318.661 crore as on April 1, from Rs 3,31,007.648 crore as on February 27, indicating a steady unwinding of positions by overseas investors in recent weeks. Market participants said the outflows coincided with a sharp rise in domestic bond yields, particularly after geopolitical tensions in the Middle East pushed global crude oil prices higher, raising inflation risks and tightening financial conditions across emerging markets. During the same period, the yield on Indian government bonds, especially the 10-year benchmark bond, rose