Foreign investors sold 47.3 billion rupees worth of Indian indexable bonds last Friday, the largest single-day sell-off since April 2025. According to data from the Indian Clearing House, in the week ending September 11, foreign investors sold a total of 57.1 billion rupee index bonds, the biggest weekly capital outflow in more than five months. The background of this sell-off is that the market is concerned that the rise in crude oil prices may increase inflationary pressure and push the Federal Reserve to raise interest rates and increase global bond yields.

Foreign investors sold 47.3 billion rupees worth of Indian indexable bonds last Friday, the largest single-day sell-off since April 2025. According to data from the Indian Clearing House, in the week ending September 11, foreign investors sold a total of 57.1 billion rupee index bonds, the biggest weekly capital outflow in more than five months. The background of this sell-off is that the market is concerned that the rise in crude oil prices may increase inflationary pressure and push the Federal Reserve to raise interest rates and increase global bond yields.