Indian bonds' inclusion in JPMorgan index set to attract record foreign fund inflows

Mumbai: Indian bonds are set to attract record foreign fund inflows on June 28 when they will be included in JPMorgan's Emerging Market Index.

Earlier, on August 20, 2014, Indian bonds attracted foreign fund inflows of $2.7 billion following India's credit rating upgrade.

Assets worth about $200 billion are tracked in the JPMorgan Emerging Market Index and it is estimated that India's weightage in this index will be 10 per cent by March 2025.

Global funds have remained bullish on the Indian debt market since September 2023. They have invested nearly Rs 83,360 core ($10 billion) in Indian bonds in the last 10 months.

According to the Clearing Corporation of India, global funds have invested about Rs 7,350 crore in Indian bonds till June 18. In May it was around Rs 5,200 crore. However, in April, about Rs 9,830 crore was sold by them in the bond market.

Investment coming into Indian bonds is also helping to keep bond yields low.

Apart from JPMorgan, Bloomberg Index Services will also include some Indian bonds in the local currency index of emerging markets early next year.