FPI G sec buying plunges in FY26 as West Asia risks and rupee pressure bite

Published on 24 April 2026

Outflows rose as conflict fears and rupee pressure intensified

Foreign portfolio investors bought fewer Indian securities in FY26, with outflows increasing as tensions in West Asia escalated. Economists expect muted flows in FY27, citing the ongoing Gulf conflict, a weaker rupee, and worries about government finances. A major catalyst such as bond index inclusion may be needed to restart stronger inflows.

FPI buying of G-secs fell sharply in FY26
West Asia conflict drove higher outflows and caution
FY27 inflows likely stay muted due to rupee and Gulf risks
Bond index inclusion could be the key trigger for returns

#government finances #fpi #gulf conflict #rupee #g-secs

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FPI G sec buying plunges in FY26 as West Asia risks and rupee pressure bite

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