FPIs net sellers of G-secs under FAR in FY26, inflows return in Q2

FPIs sold Rs 17,262 crore of government securities under FAR in FY26 so far, but Q2 has seen a turnaround with Rs 14,540 crore in inflows as bond yield spreads widened

Foreign Portfolio Investors (FPIs) have net sold Rs 17,262 crore worth of Indian government securities under the Fully Accessible Route (FAR) so far in FY26, compared with net purchases of Rs 54,259 crore during the same period last year. Market participants attributed the sell-off largely to profit booking and rupee volatility amid global interest rate uncertainty.

 

“The inflows we saw last year were due to inclusion of government bonds in JP Morgan indices. This year the inclusion process is over and there have been many global uncertainties and domestic uncertainty around the RBI’s decision, which has impacted flows,” said the