The Indian rupee continued to strengthen for the fourth straight session, trading at its highest in two-and-a-half months. The currency has gained 1.4% in just the last five trading sessions. On Tuesday, it rose to 73 against the dollar, up another 0.3%.
Flows: Debt Flows Made A Comeback In August
Inflows into equity markets were strong until June, although July saw net outflows of Rs 11,308 crore. In August, foreign investors brought in a net of Rs 368 crore. However, recent initial public offerings have meant that money has come in when subscriptions open, even as some of it flows back out if allotments are not made. The rupee will continue to garner support from equity markets
But a change in trend was witnessed in debt flows in August, which after being tepid for months, surged. A net of Rs 11,865 crore came into the debt market in August, showed data from National Securities Depository Ltd. This is the highest since March 2019. Another Rs 2,063 crore came into debt via the longer-term voluntary retention route.