Foreign Institutional Investors (FIIs) poured a record ₹53,363 crore into all types of debt securities, compensating for a nearly equal amount sold in equities in June 2026. This led to a net inflow of about ₹334 crore in FII flows, marking the first month of inflow in the calendar year, according to data from NSDL. Debt security investments are classified into General Limit, VRR and FAR, a large section of which can be attributed to government securities. Inflows in the General Limit and Fully Accessible Route (FAR) came in at ₹28,196 and ₹21,788 crore in June 2026. FAR bond investments were up five times, and General Limit investments increased from an outflow of ₹100 crore last month. The increase in inflows comes weeks after the Union Ministry of Finance exempted government securities from long-term capital gains and increased the tenors of bonds in the FAR category in a bid to deepen bond markets. The move also comes at a time when the overall foreign investor behaviour leans towards aversion to the Indian markets, largely due to sub-par returns in equities owing to higher valuations and a depreciated rupee. Equity outflow, however, continued for the fourth consecutive month to ₹51,456 crore in June 2026. In the past six months put together, equity outflows alone were ₹2.76 lakh crore. The debt-equity inflow however softened the overall investment position to an inflow of ₹334 crore. While equity outflows continued, the quantum showed signs of slowing in the second half of June 2026 as the rupee appreciated on emerging certainty between the U.S. and Iran. Independent of the tax policy changes, relatively better global conditions led to slower outflows. Published - June 29, 2026 10:25 pm IST