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Foreign investors bid over $4.3bn for India government bonds
July 23, 2013, 9:30 am

[AP Images]

FIIs have pulled out more than $3 billion from the Indian capital markets this month [AP Images]

Foreign institutional investors (FIIs) in India have put in bids worth over $4.3 billion in an auction for debt securities worth $3.96 billion.

The activity highlights a strong demand for government bonds despite a falling rupee.

Fifty successful bids were made in the auction held Monday at the Bombay Stock Exchange and National Stock Exchange for the allocation of FII investment limits in government debt securities.

The government recently hiked the investment limits for FIIs in government debt to $30 billion, from $25 billion previously.

FIIs have pulled out more than $3 billion from the Indian capital markets this month amid concerns over the depreciating rupee that took a steep fall after the US Federal Reserve’s comments about ending US monetary stimulus.

The rupee has depreciated by about 13 per cent since the end of April – it currently trades slightly above the 60 mark.

FIIs need to bid for investment limits in an auction conducted periodically by Indian market regulator Sebi.

Source: Agencies