Mumbai: Net foreign investments in Indian debt through the Fully Accessible Route (FAR)-eligible bonds remained modest in November at about ₹5,760 crore. The month saw both inflows and outflows-the first driven by expectations of a rate cut this week, and the latter triggered by the recent depreciation of the rupee to record lows.
Economists said the medium-term view remains supportive as the Reserve Bank of India (RBI) is expected to support the bond market via open market operations (OMO) purchases. Furthermore, the interest rate differential between India and other emerging market economies provides leverage for foreign investors to invest in India.
“Yields on Indian bonds have been higher over the past couple of months, and the…