India's bond inflows hit one-year high after RBI's steps to support rupee

Global funds bought ₹4,490 crore ($469 million) worth of index-eligible bonds on Friday, the most since June 30, 2025, when the government scrapped taxes on overseas investment in govt securities

By Pratigya Vajpayee

 

India’s index-eligible bonds recorded their largest inflow in almost a year after authorities announced measures aimed at boosting foreign purchases of the nation’s debt and supporting the rupee.  

Global funds bought ₹4,490 crore ($469 million) worth of index-eligible bonds on Friday, the most since June 30, 2025, when the government scrapped taxes on overseas investment in government securities and added new long-tenor bonds to the fully accessible route, under which securities are eligible for inclusion in global bond indexes. 

 

Investors who were previously on the sidelines due to operational reasons bought after the measures, according to Alok Sharma, head of treasury at Industrial and Commercial Bank of China Ltd. in Mumbai. 

 

 

The rupee rose 0.9 per cent versus the dollar on Friday, its biggest gain since April 2 when the central bank announced stringent curbs on currency trades by banks.

 

Other Asian countries have also stepped up efforts to support their currencies as renewed tensions in West Asia drive up energy prices and spur risk aversion among foreign investors. Bank Indonesia Governor Perry Warjiyo and Finance Minister Purbaya Yudhi Sadewa on Saturday agreed to work together to boost asset yields, to support the rupiah.