FPI debt flows may favour countries nearing rate cuts - ICICI Securities PD

ICICI Securities

18/04/2023 03:41

* Foreign inflows may be seen favouring countries where the
probability of rate cuts is higher, ICICI Securities Primary
Dealership said
    * "High yielders such as India typically benefit in a big
way at
the later stages of this capital flow cycle," economists
Abhishek Upadhyay and Tadit Kundu said in a note
    * Foreign investors have sold Indian government bonds worth
3.2
billion Indian rupees ($39.04 million) on a net basis so far in
April, CCIL data showed
    * They had bought notes worth 91 billion rupees on a net
basis in
January-March 
    * Given policy rates in India are comfortably lower compared
to
past rate-hike cycles and in contrast to many other emerging
markets, the relative appeal would be accordingly less perhaps,"
the note added
    * Last week, the RBI maintained status quo on policy rates
against
expectations of a hike, raising bets that they will maintain
prolonged pause


($1 = 81.9610 Indian rupees)

 (Reporting by Dharamraj Dhutia)
 ((dharamraj.dhutia@tr.com))