Effect of Rupee Stability! Global funds increased purchases of Indian bonds by 46 times

New Delhi, October 23 (IANS). Foreign investors increased the purchase of Indian government bonds by 46 times this week. This shows that the confidence of foreign investors in the Indian market is increasing. Global funds last week bought Rs 55.51 billion ($631 million) worth of debt funds available to foreigners, according to data from the Clearing Corporation of India. Last week this figure was Rs 1.21 billion. This purchase was seen at a time when the Reserve Bank of India (RBI) is continuously taking steps to strengthen the rupee and as a result, an increase of around one percent in the rupee against the dollar was seen on Wednesday. After the intervention of RBI, the Rupee is continuously strengthening from its record low and this is also raising the yield on Indian bonds and this will be the second consecutive month when Indian bonds have outperformed the peer bonds of other emerging markets. The 10-year yield is around 6.5 percent, which is the highest in the region. In the five days to last Friday, the rupee saw its biggest rise in four months as the central bank took steps to strengthen the rupee in both foreign and offshore markets. This helped limit the rupee’s decline against the dollar to 2.6 percent since the start of the year. It remains the worst performing Asian currency after the Indonesian rupiah. According to ACE Mutual Fund data through October 20, the one-year returns of the top 10 international funds ranged between 33 percent and 72 percent. In comparison, the benchmark Nifty returned only 5.7 percent during the same period. Mirae Asset NYSE Fang Plus ETF FOF topped the list with an impressive return of 71.78 percent in one year. It was followed by Invesco Global Consumer Trends FOF, which returned 52.65 percent, benefiting from the strong performance of global consumer brands and digital commerce companies. –IANS ABS/ Share this story Tags