INFLOWS
ETMarkets Smart Talk | RBI's FPI reforms and index inclusion could unlock up to $25 billion in debt inflows: Dhawal Dalal of Edelweiss MF
In an interaction with Kshitij Anand of ETMarkets, Dhawal Dalal, President & CIO – Fixed Income at Edelweiss Mutual Fund, said the combination of regulatory easing and potential inclusion in widely tracked global bond indices could bring up to $20–25 billion in incremental debt inflows over the next 12–24 months.
FCNR(B): Revisiting a proven crisis management tool
Facing renewed external sector pressures, the RBI has revived a version of the FCNR(B) deposit framework to attract foreign currency inflows and support the rupee. While effective for near-term stability, experts say long-term resilience requires reducing structural vulnerabilities and import dependence.
ETMarkets Smart Talk| RBI's FPI reforms could attract $50-100 billion into Indian debt over time: Vikas Garg of Invesco MF
RBI’s easing of foreign investment norms for government securities could attract substantial long-term capital inflows into India’s debt market, according to Invesco Mutual Fund. The reforms may deepen bond markets, support the rupee, improve liquidity and strengthen macroeconomic stability.
Bringing in US dollars: RBI flags off FCNR(B) chase, pushes banks to go all out for forex inflows
In an ambitious bid to enhance India's foreign currency reserves, the Reserve Bank of India is urging banks to ramp up their efforts in attracting foreign currency non-resident deposits (FCNR(B)). By rolling out a series of enticing incentives for these deposits, the central bank aims to bolster dollar inflows, which will ultimately fortify the stability of the Indian rupee.
RBI pushes banks to bring more dollars home
The push comes amid RBI measures to incentivise foreign currency inflows, including swap facilities and hedging cost support for FCNR(B) deposits, aimed at strengthening forex reserves and easing pressures on the rupee. The rupee depreciated nearly 11% last fiscal year and touched a record low of 96.96 against the US dollar in May. It closed at 95.11 on Friday.
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BlackRock says oil, FX risks loom over India's bond inflow push
Indian debt is piquing the interest of foreign investors thanks to new government initiatives. Nonetheless, investment giant BlackRock remains cautious, keeping its exposure steady. Challenges like steep currency hedging expenses and volatile oil prices cast a shadow on the prospects. For foreign capital to make a significant leap into rupee-denominated bonds, a clearer geopolitical landscape is crucial to alleviate concerns.
RBI move sparks race among banks to raise FCNR(B) deposit rates; smaller lenders offer over 7% on USD deposits
Banks are aggressively increasing interest rates on NRI dollar deposits. This move follows a special RBI dispensation to boost foreign currency inflows. Several lenders are now offering over 7 percent on US dollar FCNR(B) deposits. This initiative is expected to attract significant foreign currency into India. The competition among banks is intensifying to secure these valuable overseas funds.
India bonds surge as oil nears 8-week low on US-Iran deal hopes
Indian government bonds rallied early Friday as oil prices plunged, with Brent crude futures easing nearly 2% to $88.66 per barrel. This decline, driven by hopes of a U.S.-Iran peace deal, boosted demand ahead of a significant debt auction. The benchmark 10-year U.S. Treasury yield also eased, contributing to the positive sentiment for Indian debt.
Sectoral and thematic fund inflows plunge 67% to Rs 647 crore. Are investors turning away from thematic bets?
Sectoral and thematic mutual fund inflows saw a significant drop in May, falling by 67%. This decline suggests investors are moving away from concentrated bets towards diversified strategies. Experts believe this trend reflects a natural shift during market uncertainty. While some sectors show strong performance, others lag, making sector selection challenging.
Banks raise NRI deposit rates to draw dollar inflows
Indian banks are offering higher interest rates on foreign currency deposits. This move aims to attract money from overseas residents. The Reserve Bank of India has introduced new measures to boost dollar inflows. These efforts are designed to strengthen the Indian rupee. Experts predict significant inflows could stabilize the currency. This strategy revives a successful approach from 2013.
India bonds end higher as oil eases; focus shifts to debt sale, inflation
Thursday marked a positive performance for Indian government bonds, buoyed by falling oil prices that alleviated fears tied to the U.S.-Iran crisis. The Reserve Bank of India took decisive action to lure foreign investors and stabilize the rupee, creating a favorable atmosphere for bond trading. Investors are looking ahead to Friday's bond auction and inflation data, with expectations running high.
Citi cuts Nifty target to 26,000 on El Nino, AI risks, picks one stock
Citi Research lowered its Nifty target due to rising earnings risks linked to geopolitical tensions and other macro concerns. However, it remains constructive on India’s medium-term outlook, citing low foreign investor ownership, resilient domestic inflows and potential gains if global conditions improve.
Are mutual fund investors losing interest in gold ETFs and multi asset allocation funds?
Gold ETFs and multi-asset allocation funds experienced a moderation in investor inflows last month, with gold ETFs seeing a net outflow of Rs 725 crore. Experts advise against over-interpreting single-month data, emphasizing long-term portfolio objectives and strategic asset allocation over short-term trends.
War-wary, May equity MF inflows fall 40% to year low
Equity mutual fund inflows experienced a significant 40% drop in May, reaching a 12-month low of ₹22,908 crore. This decline, the steepest since May 2023, occurred as investors reduced lump-sum investments due to escalating West Asia conflict concerns. Meanwhile, Systematic Investment Plan (SIP) flows remained robust, showing only a marginal decrease.
Short-end Indian debt gains as RBI dollar measures spur buying
Short-term Indian government bond yields have dropped to their lowest in three months. This move steepens the yield curve significantly. Expectations are high that banks will invest funds from the RBI's dollar inflow measures into this segment. The Reserve Bank of India's steps to attract foreign currency deposits are expected to lower funding costs for banks.
India's bond tax exemptions set to boost foreign debt inflows and global index inclusion bid
India is turning heads in the financial world by scrapping taxes on foreign investments in government bonds. This groundbreaking change aims to attract a significant amount of overseas capital while simplifying the way foreign investors navigate its debt market. As India gears up for potential entry into major global indexes, there’s a tangible increase in interest from abroad.
Gold ETFs see first outflow in a year, silver ETFs bleed for fourth straight month
Gold ETFs saw their first outflow in over a year in May, while silver ETFs extended losses for the fourth straight month, according to AMFI data. Gold ETFs recorded an outflow of Rs 725 crore versus an inflow in April, while silver ETFs saw a Rs 2,133 crore outflow, taking total withdrawals over four months to Rs 3,770 crore.
AMFI Data: Mutual fund SIP inflows slip 1% to Rs 30,954 crore in May
May SIP Data: The monthly inflows remained above the Rs 30,000 crore mark for the third consecutive month. On yearly basis, the SIP inflows went up 16% from Rs 26,688 crore in May 2025. Overall, equity mutual fund inflows declined 40% month-on-month to Rs 22,907 crore in May from Rs 38,440 crore in April. However, on a year-on-year basis, inflows rose 20% from Rs 19,013 crore recorded in May 2025.
India's current account deficit to remain 1.5-1.7% of GDP in FY27 but RBI measures may turn BoP surplus: SBI Report
India's current account deficit is projected for FY27. However, Reserve Bank of India measures are anticipated to improve the country's external position. These steps aim to strengthen the Rupee and attract foreign capital. This could lead to a balance of payments surplus for FY27. Inflows are expected to boost foreign exchange reserves and banking system liquidity.
AMFI Data: Equity mutual fund inflows tumble 40% to Rs 22,907 crore in May
Among the 11 sub-categories, flexi cap funds remained investors’ favourite, attracting the highest inflow of Rs 5,175 crore in May, compared with a record-high inflow of Rs 10,147 crore in April.
RBI measures likely to attract USD 55-65 billion inflows in FY27: SBI report
India anticipates USD 55-65 billion in foreign inflows this fiscal year. The Reserve Bank of India's recent measures aim to stabilize the rupee and boost the country's balance of payments. These initiatives are expected to attract more foreign capital and deepen the domestic debt market. The overall balance of payments is projected to be in surplus for FY27.
Bitcoin rebounds above $63,000 as ETF inflows return and large investors step in
Bitcoin climbed back above $63,000 as ETF inflows resumed and institutional buying improved sentiment after last week’s sharp correction. Despite the rebound, markets remain cautious amid weak broader trends, key resistance levels, and upcoming macro triggers, including US inflation data and Federal Reserve policy decisions influencing crypto direction.
Indian bonds draw buyers on RBI measures, softer oil
Indian government bonds saw renewed buying on Tuesday. Lower oil prices and Reserve Bank of India measures to attract dollar inflows improved sentiment. The benchmark bond yield fell. The RBI's recent policy decision focused on attracting foreign debt inflows. These measures are expected to bring significant inflows. India posted a current account surplus in the last quarter.
India's current account surplus at $7.1 bn in Q4 FY26, aided by robust services exports and remittances
India achieved a current account surplus of $7.1 billion in Q4 FY26, driven by robust services exports and remittances. Despite a growing merchandise trade deficit, the external sector saw this surplus, though it was lower than the previous year's $13.7 billion.
FAR expansion, tax relief may boost foreign bond inflows, but risks remain
New government debt rules aim to attract foreign investment. Additional government securities are now accessible to foreign investors. Tax exemptions are also in place. These measures are expected to boost Indian debt appeal over time. However, immediate foreign inflows remain uncertain. Global events like oil prices and regional conflicts influence investor sentiment.
PSUs to get concessional forex swaps to boost external borrowings
The Reserve Bank of India will introduce a special foreign exchange swap facility for public sector undertakings. This initiative aims to encourage external commercial borrowings by these entities. The facility will be available until September 30. It is expected to significantly increase dollar inflows into India. Governor Sanjay Malhotra anticipates healthy flows from this and other government measures.
RBI expects healthy foreign capital inflows, better balance of payments after easing measures
The RBI is introducing new measures to attract foreign investment. These steps aim to boost capital inflows and improve India's balance of payments. The central bank expects significant overseas funds to enter the country through various channels. These initiatives are designed to make it easier for foreign investors to participate in India's financial markets.
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