FPIs continue to sell Indian debt, for 4th month in a row

Foreign portfolio investors (FPIs) continued to pull out of Indian debt via the fully accessible route (FAR) for the fourth consecutive month in July, as the country's rate-cutting cycle nears its end.

Net sales stood at ₹455 crore for the month, with flows fluctuating amid mounting pressure on the rupee following US tariff announcements and prevailing uncertainties ahead of key policy decisions. So far in FY26, FPIs have net sold ₹23,435 crore, according to CCIL data.

Mid-July saw mild inflows after softer domestic inflation data raised hopes of another rate cut by the Reserve Bank of India (RBI) in August. However, those expectations faded after RBI governor Sanjay Malhotra clarified on July 25 that future rate decisions would be guided by long-term inflation and growth projections, not short-term data.