FPIs bought bonds worth ₹13,397 cr via FAR in Oct, highest in FY26 so far

Market participants said that sentiment in the domestic debt market improved due to the US Federal Reserve's policy rate cuts, and growing expectations of a trade deal between the two countries

Sentiment in the domestic debt market improved due to the US Federal Reserve’s policy rate cuts, and growing expectations of a trade deal between India and America, said market participants.

 

In October, foreign investors bought a net ₹13,397 crore worth of central government securities designated under the Fully Accessible Route (FAR). This is the highest in the current financial year (FY26) and compares to a net buy of ₹8,333 crore in September.

 

“Foreign portfolio investors (FPIs) came back to the market as the yield spread between the US and India widened to 251 basis points (bps). It had narrowed below