The surge follows the government's June 5 decision to cut taxes on capital gains and interest income on bonds, removing one of the last barriers for global funds investing in India's sovereign debt
IIFCL is the latest company to tap into the foreign lending market after the Reserve Bank of India introduced a series of measures to boost dollar inflows and support the rupee
Overseas investors have stepped up purchases of Indian govt bonds after Centre scrapped taxes on debt investments and relaxed ownership limits, improving market's appeal and supporting capital inflows
Global fund managers are turning more positive on India, citing improved policy flexibility and stronger differentiation from other emerging bond markets
Move operationalises Centre's decision to expand direct equity investment access beyond NRIs and OCIs
Why has India made government bonds virtually tax-free for foreign investors? In this video, we explain the Centre's latest tax amendment that removes taxes on interest income
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
Foreign investors are subject to a 12.5% LTCG gains tax on listed shares and bonds held for more than 12 months, and a 20% withholding tax on interest earned from govt bonds
Overseas investors overall bought bonds worth ₹22,100 crore in January-February, while in March, they sold a record ₹17,700 crore, before turning buyers in April-May
India's economy has improved over the past two quarters, but compared to markets like the US, Korea, Taiwan and even Japan, growth still looks less compelling
In April alone, they snapped up shares worth ₹19,664 cr, recording their biggest buy since Oct '24
Taiwan has become the world's fifth-largest stock market while South Korea narrows the gap with India amid a global rally in AI-linked technology stocks
Local stocks are among the worst performers globally so far in 2026, with a weakening rupee worsening a record $23 billion foreign selloff as global investors chase AI-linked plays elsewhere in Asia
Foreign investors continued to pare their exposure to Indian equities, withdrawing Rs 27,048 crore so far this month, indicating cautiousness among global investors amid an evolving global macroeconomic and geopolitical environment. With this, total outflows by Foreign Portfolio Investors (FPIs) from the equity market have reached Rs 2.2 lakh crore in 2026, higher than the Rs 1.66 lakh crore pulled out during the entire 2025, according to data with the NSDL. FPIs were net sellers in all months of 2026, except February. They withdrew Rs 35,962 crore in January before turning net buyers in February, when they invested Rs 22,615 crore, the highest monthly inflow in 17 months. However, the trend reversed in March, when foreign investors pulled out a record Rs 1.17 lakh crore. The selling continued in April with net outflows of Rs 60,847 crore and extended into May with withdrawals of over Rs 27,000 crore so far. Himanshu Srivastava, Principal - Manager Research at Morningstar Investmen
PNB Gilts shares surged nearly 20% after reports suggested India may reduce taxes on bond investments by foreign investors to attract capital and support the rupee
Foreign investors are losing dominance in Indian markets as Domestic investors hit record ownership levels in the Nifty 50 & Nifty 500. What’s driving this shift in Indian equities,
Foreign investors continued to pare their exposure to Indian equities, withdrawing Rs 14,231 crore so far this month driven by persistent global macroeconomic uncertainties. With this, the total outflow of Foreign Portfolio Investors (FPIs) from the equity market has crossed Rs 2 lakh crore in 2026, which is higher than the Rs 1.66 lakh crore pulled out during the entire 2025, according to data with the NSDL. FPIs were net sellers in all months of 2026, except February. They withdrew Rs 35,962 crore in January before turning net buyers in February, when they invested Rs 22,615 crore, the highest monthly inflow in 17 months. However, the trend reversed in March, when foreign investors pulled out a record Rs 1.17 lakh crore. The selling continued in April with net outflow of Rs 60,847 crore and extended into May with withdrawal of Rs 14,231 crore so far. "The selling was largely driven by persistent global macroeconomic uncertainties, particularly concerns around inflation, interes
India, which imports 90 per cent of its energy needs and relies heavily on supplies from West Asia, is among the most vulnerable to the energy shock
FPIs were net equity sellers in March, first full month after the conflict began
Fitch Ratings on Tuesday said significant ownership by foreign shareholders can be positive for Indian financial institutions' credit profiles through long-term capital, as well as lifting of governance standards in some cases. However, foreign interest is not in itself a reliable signal of stronger credit fundamentals. Transactions that strengthen internal controls, risk management and leadership accountability can be more credit-relevant than those purely for financial gains, it noted. Fitch said recent greater interest from foreign investors indicates their rising confidence in India's long-term growth prospects, the financial sector's regulations and oversight, and improved risk governance. Fitch believes investors will seek platforms with scalable distribution and local expertise. "Acquirors with experience in developed markets may introduce enhancements in risk controls and board oversight," it said, adding that the presence of reputable strategic shareholders can potentially