Halister News

(Bloomberg) -- India’s announcement to raise FII debt quota should “definitely” spur foreign flows into local bonds in medium term, says Gopikrishnan MS, head of FX, rates and credit for South Asia at Standard Chartered, in an interview.

• Given there are still unutilized FII debt quota, however, the planned increase is unlikely to prompt buying from foreign institutional investors in near term: Mumbai-based Gopikrishnan; NOTE: RBI to raise FPI investment limit in govt securities by 205b rupees; NSDL data show 14.47b rupees ($218m) in govt debt quota currently available for all foreign investors as of March 29
• Govt sticking to fiscal deficit target, held-to-maturity status for special state bonds under power sector restructuring and passage of some bills have supported bond- market sentiment in past month: Gopikrishnan; says all of these factors led to “renewed interest from offshore investors as can be seen from inflows into equities and debt”