Foreign Investors Return to Indian Bonds Ahead of Index Inclusion

Reported 8 months ago

Foreign investors are increasing flows to Indian bonds after a decline in April, anticipating the debt's inclusion in a major global index by the end of the month. Net flows have risen to $10 billion since September, with global funds purchasing a net 73.5 billion rupees of index-eligible debt in June. These inflows are helping lower yields after Prime Minister Narendra Modi's coalition government formation post a close election. Bloomberg Index Services Ltd. will also add some India bonds to its emerging market local currency index next year.

Source: YAHOO

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