Start trading now on Poste Italiane

India’s trillion-dollar bond market braces for foreign capital boost



India’s sovereign bond market, valued at a trillion dollars, is set to witness a significant inflow of foreign capital. This development comes in the wake of JPMorgan Chase & Co. (NYSE:)’s decision to incorporate Indian debt into its emerging market indices.

The multinational banking corporation disclosed this strategic move last week, assigning a maximum weightage of 10% to India in its primary emerging market index. The inclusion process will begin progressively from June 2024.

Financial forecasts predict that this decision by JPMorgan could attract over $20 billion in inflows. This substantial influx of new capital is expected to alleviate concerns about fund availability within the bond market and provide a boost to the Indian Rupee.

The impending foreign capital is anticipated to play a crucial role in stabilizing the supply-demand dynamics within the bond market and offer robust support to India’s currency. The move by JPMorgan is therefore expected to have a significant impact on the strength of India’s bond market and its national currency.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Previous Post
Nigeria’s external debt surges due to weak naira and forex policy changes
Next Post
Asia FX still reeling from hawkish Fed outlook, dollar steady

Leave a Reply

Your email address will not be published. Required fields are marked *

Fill out this field
Fill out this field
Please enter a valid email address.
You need to agree with the terms to proceed

Invest on crypto with Gianluca Vacchi project and start making money now
Win money trading on Amazon