Foreigners Dump Record Indian Bonds as Weak Rupee Erodes Returns

Indian sovereign bonds eligible for inclusion in global indexes are on track for a record monthly outflow, as a weaker rupee and signs the central bank is nearing the end of its interest-rate cut cycle weigh on sentiment.

Global funds have sold 143 billion rupees ($1.6 billion) of bonds so far in December, according to Clearing Corporation of India data. That marks the biggest outflow since the so-called Fully Accessible Route — a framework under which select government bonds have no foreign investment restrictions - was created in 2020. Outflows may continue in the coming months, Standard Chartered Plc said.