Indian Funds Sell Record 356 Billion Rupees in Bonds

Indian mutual funds sold a record 356 billion rupees in government bonds this March due to oil price risks. Managers are now favoring short-term corporate debt.

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Mutual funds in India have sold government bonds at a record pace in March as the conflict involving Iran drove up oil prices and heightened inflation risks. This market shift has pushed the Indian rupee to record lows and prompted a broad selloff across the debt market, leading asset managers to pivot toward short-duration corporate debt. Mutual funds have net sold government bonds worth 356 billion rupees ($3.82 billion) so far this month, a record for any single month according to clearing house data.

A man observes market data on a display outside the Bombay Stock Exchange building in Mumbai, India, during February 2026. REUTERS/Francis Mascarenhas/File Photo
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