Foreign banks purchased Indian government bonds totaling Rs 8,038 crore ($962.2 million) on June 13, marking the largest single-session purchase since February 1. This surge followed softer-than-expected US inflation data, increasing expectations of rate cuts, and India’s imminent inclusion in JPMorgan’s emerging market debt index. Most of the buying was concentrated in 10-year and longer maturity bonds. Traders anticipate passive inflows of $20-25 billion after the index inclusion. India’s favorable fiscal outlook compared to other emerging markets is also attracting foreign investment.