FIIs Prefer Debt Over Equities in India as Inflows Shift: Report

Foreign Institutional Investors (FIIs) are increasingly favouring India’s debt market over equities, according to the latest market trends. The shift indicates a growing preference for stable returns and lower-risk instruments amid global economic uncertainties and fluctuating equity valuations.

Analysts note that the Indian debt market has become more attractive due to higher bond yields, stable macroeconomic conditions, and expectations of monetary easing. In contrast, equities have seen intermittent outflows as FIIs turn cautious about valuations and global risk sentiment. The trend reflects a broader investment strategy where safety and predictable income are being prioritised over aggressive growth bets.

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