Foreign investors, lenders pile onto India bonds on policy easing hopes
Foreign investors as well as foreign banks have stepped up purchases of Indian government bonds in hopes of policy easing as early as this week
Investors net bought bonds under Fully Accessible Route (FAR) worth 59.4 billion rupees ($700.63 million) in last two sessions, CCIL data shows
Lenders net bought bonds worth 165.1 billion rupees during the same period
"Things have changed drastically after growth data, and most are now expecting liquidity easing if not an actual rate cut in this week's meeting," trader with a foreign bank says
RBI's monetary policy committee decision due on Friday, market anticipates liquidity-easing steps
India's economy grew by 5.4% in July-September, slowest pace in seven quarters
While ANZ bats for a rate cut, Citi, Deutsche Bank and HSBC expect 50 bps CRR cut this week
($1 = 84.7810 Indian rupees)
Reporting by Dharamraj Dhutia
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