Why have FIIs been net sellers in debt in October?
For the month of October FPIs have sold over $700 million of bonds on a net basis. There are 3 things that you need to understand at the very outset. Firstly, $700 million is not really a big number to get worried about. Secondly, FPIs are close to their limits on Indian G-Sec debt and the leeway is limited as of now. Lastly, FPIs anyways tend to lighten positions in emerging market debt in the last quarter due to a plethora of macro risks. Having said that, it is essential to understand 3 factors that are driving debt selling… Continue reading