FPIs invest Rs 31,933 crore in government securities in June so far
The government declared on June 5 that FPIs would no longer be subject to taxes on capital gains and interest income as of April 1
Foreign portfolio investors (FPIs) have made investments worth Rs 31,933 crore in Indian government securities (G-Secs) through a fully accessible route (FAR) so far in June, which is the biggest monthly inflow under the route, as per the data from the Clearing Corporation of India.
Net inflows increased to Rs 14,034 crore on Monday alone following the inclusion of three more bonds to the FAR category by the Reserve Bank of India (RBI). This covers current foreign investment in these bonds as well.
As of Tuesday, FPI holdings in G-Secs totaled Rs 3.56 lakh crore, while net inflows into government securities reached Rs 42,708 crore in the current fiscal year.
The government declared on June 5 that FPIs would no longer be subject to taxes on capital gains and interest income as of April 1. Additionally, the RBI added bonds with maturities of 15, 30, and 40 years to the list of G-Secs that are eligible under FAR. Among other measures, it implemented FX swap policies for foreign borrowings and FCNR deposits.
The benchmark 10-year government bond yield dropped 10 basis points to 6.88 percent after these measures, while the rupee gained more than 1 percent to 94.56 against the dollar.
Earlier, on June 14, FPIs continued to sell off Indian stocks, withdrawing over Rs 62,853 crore in the first two weeks of June amid growing geopolitical tensions, concerns about global economic growth and the ongoing rupee depreciation.
According to data from the National Securities Depository Ltd (NSDL), the most recent selloff has increased cumulative FPI outflows from Indian equities to Rs 2.87 lakh crore so far in 2026, surpassing the Rs 1.66 lakh crore wiped out during the entire year of 2025.
The data highlighted that overseas investors were net sellers in every case except February of 2026. FPIs were net purchasers in February with investments of Rs 22,615 crore, their largest monthly inflow in 17 months, following their withdrawal of 35,962 crore in January. But after that, sales picked up again, and they continued until June.
