FPI Dumps Domestic Bonds

Apart from the bond yields and geopolitical crisis, another trigger for FPI selling was the tweak in India's tax treaty with Mauritius, which would now impose higher scrutiny on investments

If India is included in the global bond indices, it could ensure potential inflows of up to $30 billion into Indian fixed-income securities

While selling started in April, it has intensified this month, with FPIs pulling out $1.1 billion and $2.5 billion from equities and debt market, respectively