November 25, 2024

Global index inclusion may draw up to $40 billion flows to India

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India’s trillion-dollar sovereign bond market is gearing up for a rush of foreign money after JPMorgan Chase & Co. said it will include the nation’s debt in its emerging market indices.
The country is allocated a maximum 10% weight in the main emerging market index, which will be started in a phased manner from June 2024, JPMorgan said in a statement last week. The move will draw upwards of $20 billion of inflows as per various estimates and will help ease supply worries in the bond market as well as provide support to the rupee.
Bloomberg LP is the parent company of Bloomberg Index Services Ltd., which administers indexes that compete with those from other service providers.
Following are estimates of various local and foreign banks and brokerages on the likely inflows in the coming months:



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