On September 19, 2025, the indicative value of aggregated possession of G-SECs £ 3.02.577 crore against £ 3.06.249 crore from the end of March 2025 and £ 1,86,416 crore from June-end 2024 | Photocredit: Designer491
Aggregate Holdings of Foreign Portfolio Investors (FPIs) in Outstanding Government Securities (G-SECs) fell to 6.7 percent of the outstanding G-SECs on September 19, 2025, against 7.1 percent from the end of March 2025.
This comes in the background of reducing the spread between the 10-year G-SEC of India and the American 10-year-old treasury smells, the rupid that comes under pressure and cautious global market sentiment in the midst of geopolitical tensions and a strong increase in rates in the US.
The current Holding, however, is higher than the level of June and 2024 of 4.6 percent If the Indian government bonds were included in the JPMorgan Global Bond Index-Eerging Markets (GBI-EM)-Going per data collected by SBI’s Economic Research Department (ERD).
From September 19, 2025, the indicative value of aggregated guide of G-SECs £ 3.02.577 crore against £ 3.06.249 crore from the end of March 2025 and £ 1,86.416 crore from June-Einde 2024 was from the end of March 2025.
SBI economists noted in a report that the use of assigned limits in Toto saw a large upick in 2023 and 2024, considerable inflow that takes into account, and awaiting absorption in global bond indices.
“FPIS Holdings is now about £ 3 Lakh Crore … On the other hand, FPIS investments in shares are 16 percent of the market cap
“With an interest difference between the US and India will probably grow in the coming months, and talk about the inclusion of Indian bonds in global indices [not just EM indices]The debt section could benefit from higher currents, although currency movement would play a crucial part in investment decisions by global allocers, ”said Soumya Kanti Ghosh, Chief Economic Advisor of Group Chief, SBI.
Venkatakrishnan Srinivasan, founder and managing partner, Rockfort Fincap LLP, noted that FPIs were in the last tax net buyers of Indian debts, with inflow over the general, voluntary retention route (VRR) and fully accessible route (FAR) categories hanging.
The increase was largely powered by the inclusion of India in global bond indices such as JPMorgan, Bloomberg and Ftse Russell, who created a structural demand for assets generated, he said.
“However, the trend lost steam in the mid-2025. The distribution between the 10-year government safety of India (G-SEC) and the US 10-year-old Treasury yield is limited strongly, under the 200 basic points of the lowest level in more than two decades.
“With our Treasury, the proceeds from Volatiel, the rupid under pressure and the sentiment of the world market are careful, withdrawn FPIs and continued to prefer the sidelines despite the long -term index steel wind,” said Venkatakrishnan.
FPI -Stream
If we point out that the recent reversal in FPI Flows provides careful optimism, he was of the opinion that the spread with the Fed -snip prices with the Fed -cut extraction is greater than 200 basic points.
Venkatakrishnan noted that this brings back the attractiveness of the trading, but it will take time before trust translates into meaningful inflow. Investors will see if this spread will last in the coming months, because one -off broadening is not sufficient.
Published on September 24, 2025
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