After a selling spree, FIIs make a return to India’s debt market

After a selling spree, FIIs make a return to India’s debt market

Buoyed by falling crude oil prices and RBI’s move to easy liquidity crisis, Foreign institutional investors (FIIs) have returned to a buying spree in the Indian debt market. They have bought nearly $1.26 billion in debt over the last nine trading sessions (between 24 October and 5 November). However they remain net sellers for the year, offloading $7.76 billion in domestic bonds. So far in November, they have bought $700.6 million in debt, the highest monthly purchase since January. Investor sentiments towards the emerging markets have been also helped by the US-China trade war. Declining crude oil prices has reduced the fear of higher inflation and a consequent fiscal slippage. Brent crude oil, which crossed $86 a barrel in October for the first time in nearly four years, now trades at a near three-month low, just below $73.

Read More at Livemint News date : 9 Nov 2018, Friday

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