Foreign investors dump bonds amid rupee slide

Foreign demand: A man walks past the Bombay Stock Exchange in Mumbai. Developments this year have the potential to shift momentum back in favour of the Indian securities, some experts say. — Reuters

MUMBAI: Indian sovereign bonds eligible for inclusion in global indexes are on track for a record monthly outflow, as a weaker rupee and signs the central bank is nearing the end of its interest rate cut cycle weigh on sentiment.

Global funds have sold 143 billion rupees (US$1.6bil) of bonds in December 2025, according to Clearing Corporation of India data.