Foreign Banks Dump ₹4,376 Crore of Indian Bonds as Brent Jumps 30% Since Feb. 28
Updated
Updated · BusinessLine · Jun 11
Foreign Banks Dump ₹4,376 Crore of Indian Bonds as Brent Jumps 30% Since Feb. 28
3 articles · Updated · BusinessLine · Jun 11
Summary
₹4,376 crore of Indian government bonds were sold by foreign banks on Thursday—the biggest one-day outflow since April 2—as renewed US strikes on Iran hit demand for debt.
Brent crude rose 1.6% to $94.55 in Asian trade and is up 30% since Feb. 28, worsening concerns for India as the world’s third-largest oil importer.
The rupee fell 0.43% to 95.6725 per dollar, extending its depreciation to more than 5% since February-end, while the benchmark 2036 bond yield touched 6.9551% before steadying at 6.9430%.
India’s government and central bank have rolled out measures to attract foreign inflows and support the currency, but traders said longer-term bets on Indian debt still hinge on actual fund flows and oil prices.
The pressure is feeding into the broader outlook: the RBI sees inflation averaging 5.1% this fiscal year and growth slowing to 6.6% from 7.7% if the US-Iran deadlock and supply disruptions persist.