Global funds have invested nearly Rs 83,360 crore ($10 billion) in Indian bonds since September 2023, indicating a bullish trend in the Indian debt market.
JP Morgan recently announced that Indian bonds would find a place in emerging global indices from June 28. REUTERS Global funds have invested around Rs 7,350 crore in Indian bonds till June 18, according to data from the Clearing Corporation of India against Rs 5,200 crore invested in May. However, in April these funds sold Rs 9,830 crore worth of bonds in the Indian debt market.
Bloomberg Index Services is set to add some Indian bonds to the emerging markets local currency index as early as next year, following JP Morgan.
Also, this would be helped by investments continuing to flow into Indian bonds after the recently formed government by the NDA coalition under the leadership of Prime Minister Narendra Modi. The yield on the 10-year government bond has fallen 8 basis points from its month-high and ended at 6.98 percent.
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