That’s bad news for the market that has slumped in five of the past six weeks as foreigners sold 43.6 billion rupees of sovereign debt in January, after paring holdings by 179 billion rupees in 2018. “I suspect the slippage in reality would be far worse," said Krishna Memani, head of fixed income at OppenheimerFunds. A dovish signal will help the market take a bit of fiscal slippage in its stride, according to BNP Paribas Asset Management. Graphic: BloombergWhile global funds were net buyers of government debt on budget day, fiscal slippage and political uncertainty mean Indian bonds will compete with other developing markets that have lower economic and political risks, OppenheimerFunds’ Memani said. Foreigners sold 13.5 billion rupees of sovereign debt on Monday, the most since December 12.

Source: Mint February 05, 2019 07:18 UTC