The sustained rise in the US bond yields, high crude oil prices and stronger US dollar have triggered continuous FII selling. DIIs, on the other hand, continue to receive good fund inflows, and so long as the Indian economy continues to do well, fund flows into DIIs will sustain, say experts
India s sovereign financing costs are currently less affected by external factors due to strong domestic financing, but this could change if non-resident holdings increase and fiscal metrics weaken, Fitch report said.
Jain says the inclusion is a major win for India, as it attracts a significant pool of global capital for bond allocations, leading to increased foreign exchange inflows