Mumbai
Foreign portfolio investors (FPIs) withdrew Rs 17,689 crore from Fully Accessible Route (FAR) government securities following the Middle East crisis, signaling heightened risk aversion and concerns over inflation from rising crude prices. Data from the Clearing Corporation of India (CCIL) showed FPI holdings fell to Rs 3,13,318.66 crore on April 1 from Rs 3,31,007.65 crore. The outflows coincided with a 0.33% rise in 10-year benchmark yields, surpassing 7% for the first time in over 20 months. Experts say higher yields reduce bond appeal, prompting overseas investors to reduce exposure in rate-sensitive FAR government securities.