Foreigners back to India Corp bond selling in July after June hiatus

SICAL Logistics

02/08/2023 03:46

* Foreign investors exited from Indian corporate bonds in
July and
turned net sellers again after buying in June
    * These investors net sold corporate papers worth 27.7 bln
rupees
($336.51 mln) in July, NSDL data shows
    * They had net bought bonds worth 60.9 billion rupees in
June,
after net sale of 112.4 billion rupees in January-May 
    * "June buying was dominated by a single issue, so we can
say that
broader sentiment remains negative as far as corporate bonds are
concerned," a trader with a foreign bank says
    * Traders expect slow and steady exit from corporate bonds
to
persist for the next couple of months at least
    * There is hardly any fresh money coming in, and whenever
bonds
mature, money is flowing out, another trader adds

    ($1 = 82.3150 Indian rupees)

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