Standard Chartered Predicts $30 Billion Inflows into Indian Bonds Following Index Inclusion
Standard Chartered Plc forecasts a substantial increase of up to $30 billion in inflows into India’s bond market following the country’s inclusion in a major global index starting in June. Parul Mittal Sinha, the head of India financial markets at Standard Chartered, shared this projection in an interview with Bloomberg TV on Thursday.
Standard Chartered Plc forecasts a substantial increase of up to $30 billion in inflows into India’s bond market following the country’s inclusion in a major global index starting in June. Parul Mittal Sinha, the head of India financial markets at Standard Chartered, shared this projection in an interview with Bloomberg TV on Thursday.
The anticipated surge in inflows is attributed to investors new to India who will enter the market as index weights begin to rise from June onwards. Sinha highlighted the excitement within Indian markets regarding this development, expecting significant additional investments.
Global funds have already injected around $10 billion into Indian bonds following JPMorgan Chase & Co.’s announcement in September regarding India’s inclusion in its closely monitored emerging-market debt index. Sinha’s remarks coincide with a rally in the country’s sovereign notes after the government revealed a smaller-than-anticipated debt issuance plan for the first half of the fiscal year starting April. As a result, benchmark 10-year Indian bond yields have dropped by 13 basis points to 7.04% since the beginning of the year.
Sinha also noted that foreign investors are exploring various avenues for investing in India, including rupee-denominated but dollar-settled bonds issued by sovereign, supranational, and agency entities. Additionally, there is significant interest in derivative instruments like total return swaps, non-deliverable overnight indexed swaps, and currency forwards for hedging exposure.
Sources By Agencies
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