The Name is Bond

The election season is on in India. There is geopolitical and geo-economic turbulence across the globe. Coupled with all this, high interest rates are pushing money in and out. FPIs are junking equities and betting on bonds, despite a lower than equity 7.75% maximum yield on government securities. Despite selling equities en-masse, the net investment of FPIs in 2024 stands at 5.3 billion dollars. All thanks to bonds.