Business
FPIs pump record funds into G-Secs after policy shift
Daily inflows from foreign portfolio investors (FPIs) through the so-called fully accessible route (FAR) have turned positive in June and are so far the highest on record in this category.
Bankers said the government measures announced on June 5 along with a stable rupee and a calmer geopolitical environment in recent days have contributed to higher FPI inflows into government securities. However, continuation of the momentum will depend on several factors including the geopolitical scenario remaining calm. If India’s sovereign debt is included in major global bond gauges, including the Bloomberg Global Aggregate Index, that would offer a significant advantage.
AgenciesInflows through ‘FAR’ Turn Positive In June
India’s central bank, the RBI, is opting against direct settlement of government securities via offshore platforms like Euroclear. Instead, it prefers overseas investors to trade directly on the domestic NDS-OM platform. This move aims to consolidate liquidity and enhance price discovery, despite recent tax incentives designed to attract foreign capital.
According to data from the Clearing Corp of India website, FPIs invested ₹33,000 crore so far in June, six times the ₹5,512 crore they invested in May. The previous highest investment in this category in the last one year was ₹12,246 crore in October 2025.
“The de-categorisation of sub-limits, simplifying processes and widening of the list of specified securities for FPIs to invest have clearly spurred these new investments. A better macro environment with issues linked to tariffs, oil prices and also by extension the rupee has given some lift to investor sentiment which are reflecting in these numbers,” said Ajay Manglunia, head of fixed income at Capri Global Capital.
The government on June 5 announced removal of restrictions such as short-term investment limit, concentration limit and the security-wise limit for investments by FPIs in government securities. Sub-categories of investment limits, viz., ‘general’ and ‘long-term’ were merged into a single limit for investment in central and state government securities, respectively.
More importantly, the government removed taxes, directly enhancing FPI returns. Earlier FPIs faced a 12.5% long-term capital gains tax on listed shares and bonds held longer than 12 months and a 20% withholding tax on interest earned on government bonds. Tenors of 15, 30 and 40 years, as well as sovereign green bonds, were also added to the list of specified securities under the fully accessible route for FPIs.Bankers said the measures have no doubt increased investor confidence, which has resulted in the inflows. But how long the momentum will continue will depend on a variety of factors. “In a way the money that has come now was always on the side lines and was boosted by the tax and other reforms. For more new money to come, we will have to wait and watch on how the macro factors behave in which global factors will also play a part,” said Gopal Tripathi, head of treasury at Jana Small Finance Bank.
There are expectations that Indian securities will be included in major global bond gauges due to the above reforms. Reserve Bank of India and finance ministry officials may reach out to the Basel-based Bank for International Settlements (BIS) for talks on investing into India, ET reported earlier this month. BIS has been given a special tax-exempt status in the latest rejig. BIS invests significantly in government securities and enjoys tax-free status everywhere.
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The company said the transition marks a significant milestone in strengthening alignment with parent entity BSE Ltd and reinforces its role within the broader BSE ecosystem.
BSECL will continue to provide clearing, settlement and risk management services across the equity, equity derivatives, currency derivatives, debt, commodity, mutual fund, electronic gold receipt (EGR) and securities lending and borrowing (SLB) segments, among others.
The company said it remains committed to ensuring financial market stability, efficient collateral management and the highest standards of regulatory compliance as mandated by the Securities and Exchange Board of India (SEBI).
“The transition from ICCL to BSE Clearing Limited reflects our strong alignment with the BSE brand and our role as a trusted pillar of India’s financial market infrastructure. Over the years, we have built robust clearing, settlement, and risk management capabilities that support market integrity and investor confidence,” said Vaisshali Babu, Managing Director and Chief Executive Officer of BSE Clearing Limited.
“As we embark on this new chapter, we remain steadfast in our commitment to operational excellence and regulatory compliance while supporting the long-term resilience of India’s capital markets,” she added.
According to the release, the rebranding will have no impact on the corporation’s operations, legal obligations, contracts or service commitments towards members, participants and stakeholders.All existing agreements, memberships and regulatory registrations will continue without interruption, the company said.
BSE, Asia’s oldest stock exchange, is also the world’s largest exchange by number of listed companies. Over the years, it has played a key role in the development of India’s capital markets and serves as a major platform for companies raising capital. Its benchmark index, the Sensex, is widely tracked by domestic and global investors as a gauge of Indian equity market performance.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
The growing push to restrict Americans from using federal food aid to buy certain processed or sugary products is creating a new challenge for some of the biggest U.S. food and beverage companies.
The U.S. Department of Agriculture as of May had approved food restriction waivers for Supplemental Nutrition Assistance Program benefits in 23 states, affecting roughly one-third of all SNAP participants, according to Numerator. The research firm estimates the restrictions could reduce food and beverage sales by as much as $830 million this year as consumers either shift spending to approved products or cut back overall.
Kroger CEO Greg Foran said on the company’s first-quarter earnings call on Thursday that customers remain under pressure in part due to reduced SNAP benefits, as well as higher gas prices, “squeezing budgets.”
“Customers are managing spend carefully and shopping with real intent,” Foran said.
Most waivers focus on limiting consumption of sugar-sweetened beverages and confectionery products, signaling a targeted approach rather than broad food restrictions. As the movement spreads, it’s forcing major packaged food companies to monitor shopper behavior and assess whether they need to remake product lines — though many of them have already been changing what they offer after consumer habits shifted in recent years.
Iowa recently became the first state to codify elements of the “Make America Healthy Again,” or MAHA, movement into law, approving legislation that targets artificial food dyes, ultra-processed foods in school and purchases made through SNAP.
“Altogether, this bill advances the health and wellness for every Iowan today and for generations to come,” said Iowa Gov. Kim Reynolds when she signed the measure last month.
She added the law helps “refocus federal food assistance programs on the actual purpose for which they were created: helping low-income families afford nutritious food.”
Attendees are greeted with”Eat Real Food” placards as they gather for U.S. Health and Human Services (HHS) Secretary Robert F. Kennedy, Jr. and Agriculture Secretary Brooke Rollins to announce new nutrition policies at the Department of Health and Human Services in Washington, D.C., U.S., January 8, 2026.
Jonathan Ernst | Reuters
The law bans several synthetic dyes, including Red 40 and Yellow 5, from most K-12 school meals and vending machines, while also restricting SNAP recipients from using benefits to buy products such as soda and candy.
Navigating the MAHA era
Many food companies aren’t waiting to see how policies evolve.
At a Goldman Sachs conference in May, Hershey said it has researchers in Texas conducting in-store interviews with shoppers who receive SNAP benefits to understand how purchasing behavior is shifting under new restrictions in the state.
“We’ve observed some consumer uncertainty at the register as new restrictions take effect,” a Hershey spokesperson told CNBC. “We anticipate this will improve as store execution improves, rules become clearer, and SNAP users can plan and budget with more certainty.”
The company is studying everything from product substitutions to budget tradeoffs, offering an early glimpse into how major food manufacturers are preparing for a potentially significant shift in consumer demand.
Many of the products most exposed to the changes are produced by some of the largest companies in the industry like Kraft Heinz, PepsiCo, Coca-Cola, General Mills, Nestle and others.
J.M. Smucker CEO Mark Smucker, however, told CNBC he expects the SNAP policy changes to have a more muted impact.
“I would say the current environment isn’t really that different than what we’ve seen over time, and thus far some of the modifications have really had no meaningful impact to our business,” he said.
Still, the company’s Hostess products like Twinkies and Donettes — the latter of which saw net sales grow 13% in the latest quarter, according to the company — may be impacted under broader state restrictions on “highly processed snacks.”
Current SNAP waivers in states like Texas focus primarily on candy and sugary drinks, not snack cakes. However, some states have proposed broader definitions that could eventually encompass packaged desserts and sweet baked goods.
At the same time, fewer Americans are even receiving the benefits. One analysis estimates 3.5 million people have lost their SNAP aid since President Donald Trump last year signed a sweeping bill that restricts eligibility for SNAP, among other changes.
Many U.S. households have found it harder to pay for groceries following the changes. The restrictions have also meant fewer dollars flowing to major businesses.
Walmart is particularly exposed to SNAP spending, capturing roughly a quarter of all SNAP grocery dollars nationwide, according to Numerator. Kroger, Costco and Amazon follow at about 8%, 6% and 5%, respectively.
The curbs on what consumers can buy with federal assistance are only one shift food companies are watching.
At a hearing of the Senate Committee on Health, Education, Labor and Pensions in April, Health and Human Services Secretary Robert F. Kennedy Jr. went as far as to say he “would support” a ban on junk-food television advertising. The department has not yet taken steps to introduce such a ban.
Responding both to Kennedy’s MAHA initiative and shifting consumer tastes, food manufacturers have also accelerated efforts to reformulate products and reduce synthetic ingredients in products like Kool-Aid, Fanta, Doritos and Flamin’ Hot Cheetos, which contain dyes like Red 40 and Yellow 5.
General Mills, Kraft Heinz and Target have all pledged to phase out certain artificial colors and additives by 2027 or sooner.
Nestle announced Monday it achieved its commitment on time to fully eliminate Food, Drug & Cosmetic colors from its U.S. food and beverage portfolio.
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A total of 16 stock market holidays have been scheduled for 2026, out of which nine have already passed.
Following next week’s closure, the next market holiday will fall on Monday, September 14, for Ganesh Chaturthi. In the second half of the year, markets will also remain closed on October 2 for Gandhi Jayanti, October 20 for Dussehra, November 10 for Diwali Balipratipada, November 24 for Guru Nanak Jayanti and December 25 for Christmas, which will be the final market holiday of 2026.
Will MCX be closed?
Meanwhile, Multi Commodity Exchange of India will remain closed during the morning session on June 26 but will resume trading in the evening session. According to MCX’s annual trading calendar, the exchange has 16 trading holidays in 2026, with either partial or full-day closures.
The National Commodity & Derivatives Exchange Limited will remain shut for both trading sessions on the same day.
Stock Market Holidays 2026
In 2026, four key holidays fall on weekends and therefore will not lead to additional market closures. These include Mahashivratri on February 15 and Eid-Ul-Fitr on March 21, both of which have already passed, along with Independence Day on August 15 and Diwali Laxmi Pujan on November 8.
Diwali Laxmi Pujan will fall on a Sunday this year, though exchanges will conduct the customary Muhurat Trading session on November 8. The timings for the special one-hour session will be announced closer to the date. Independence Day, meanwhile, falls on a Saturday.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
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