Foreign investors offloaded Indian index-eligible bonds worth 47.3 billion rupees ($493 million) last Friday, marking the largest single-day sell-off since April 2025.

Data from the Indian clearing corporation reveals that for the week ending September 11, overseas investors cumulatively sold 57.1 billion rupees worth of index bonds, registering the steepest weekly capital outflow in more than five months.

This wave of selling comes amid growing concerns that surging crude oil prices could intensify inflationary pressures, potentially prompting the Federal Reserve to raise interest rates, which in turn has driven global bond yields higher.