Inclusion in Global Indices to Bring USD 40 bn Foreign and Equivalent Domestic Capital
9 months ago

Inclusion in Global Indices to Bring USD 40 bn Foreign and Equivalent Domestic Capital

Deccan Chronicle  

HYDERABAD: India’s inclusion in the JP Morgan Global EM Bond Index and Bloomberg EM Local Currency Government indices will see annual foreign investment of $30-$40 billion over the next five years and free up equivalent amount of domestic capital investment by the private sector, finds the World Bank. By 2023-end JP Morgan announced India’s inclusion in its Global EM Bond and in March 2024, Bloomberg made its own announcement of India’s inclusion into its EM Local Currency Government indices. Over the next five years, experts predict an annual wave of foreign investment of $30-40 billion, freeing up an equivalent amount of domestic capital for investment by the private sector. The inclusion means that there is a broad consensus amongst foreign investors that the country has reached sufficient financial stability and that there is an appetite to include Indian Government Securities in global investments portfolios.

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History of this topic

Foreign investors buy $1 billion of Indian bonds on bets of policy easing after GDP data
2 weeks, 4 days ago

Foreign investors buy $1 billion of Indian bonds on bets of policy easing after GDP data

Live Mint  

Foreign investors have stepped up buying of Indian government bonds in the last four sessions, after weaker-than-expected economic growth data last week spurred expectations of monetary policy easing by the central bank. Foreign investors heavily sold bonds for most of November, as U.S. yields remained elevated after Donald Trump's victory in the presidential election raised doubts about the Federal Reserve's …

India’s foreign exchange reserves decline for eighth consecutive week
Trending News
3 weeks, 2 days ago

India’s foreign exchange reserves decline for eighth consecutive week

Live Mint  

New Delhi, December 1 : India's foreign exchange reserves slumped for an eighth consecutive week to hit a multi-month low of USD 656.582 billion in the week that ended on November 22, data from the Reserve Bank of India showed. The latest RBI data showed that India's foreign currency assets, the largest component of forex reserves, stood at USD 566.791 …

India rupee to lean on central bank help; bonds to track US peers
1 month ago

India rupee to lean on central bank help; bonds to track US peers

Live Mint  

By Dharamraj Dhutia and Jaspreet Kalra MUMBAI, Nov 18 - The Indian rupee will rely on the central bank's help to counter headwinds this week, as the possibility of slower Federal Reserve interest rate cuts and expectations surrounding Donald Trump's policies boost the dollar and U.S. bond yields. A sharp rise in the dollar and elevated U.S. bond yields since …

Foreign investors sell nearly $1 billion of JPM index-linked Indian government bonds in Nov
1 month, 1 week ago

Foreign investors sell nearly $1 billion of JPM index-linked Indian government bonds in Nov

Live Mint  

By Dharamraj Dhutia MUMBAI - Foreigners have sold 82.1 billion rupees of Indian government bonds, which are part of the JPMorgan index, so far in November, according to clearing house data on Thursday. "Foreign inflows will likely wait for U.S. yields and dollar index to stabilise before reverting to its pre-October pace," said Nitin Agarwal, head of trading at ANZ …

India Emerges as a Safe Haven for Global Investors Amid Market Uncertainty
1 month, 3 weeks ago

India Emerges as a Safe Haven for Global Investors Amid Market Uncertainty

Live Mint  

Global funds are turning to India as a haven amid financial market uncertainties caused by the US election. The country's bonds have been performing well, with its sovereign bonds remaining relatively stable despite a global selloff of US Treasuries. India's currency, the rupee, offers minimal volatility compared to other emerging market currencies, making it a popular destination for investors seeking …

India’s ‘sweet spot’ lures bond funds amid global market turmoil
4 months ago

India’s ‘sweet spot’ lures bond funds amid global market turmoil

Hindustan Times  

Global funds have poured money into India’s debt market for 14 weeks in a second streak of buying this year, evidence of the country’s appeal amid the ructions of worldwide financial markets. “India is in a sweet spot from a macro perspective and also from a monetary policy perspective,” said Jenny Zeng, chief investment officer for Asia Pacific fixed income …

India aims to expand scope of ESG debt after surpassing 2021 issuance record
4 months ago

India aims to expand scope of ESG debt after surpassing 2021 issuance record

Hindustan Times  

India’s market regulator intends to expand the scope of its sustainable finance framework to include more products, a potential boost to ESG-labeled instruments in Asia. {{^userSubscribed}} {{/userSubscribed}} {{^userSubscribed}} {{/userSubscribed}} The Securities and Exchange Board of India will consult on introducing social bonds, along with sustainable and sustainability-linked bonds, to the current suite of environmental, social and governance debt. {{^usCountry}} {{/usCountry}} …

Foreign investors pumped ₹33,600 crore in Indian equity in July amid continued policy reforms and good earnings season
4 months, 3 weeks ago

Foreign investors pumped ₹33,600 crore in Indian equity in July amid continued policy reforms and good earnings season

Hindustan Times  

Foreign investors injected over ₹33,600 crore into Indian equities so far this month on the expectation of continued policy reforms, sustained economic growth and a better-than-expected earnings season. Foreign investors injected over ₹ 33,600 crore into Indian equities so far this month However, they pulled out over ₹7,200 crore from equities in the last three trading sessions after the government …

India eases paperwork for foreign bond investors amid inclusion in JPMorgan’s emerging market bond index
5 months, 3 weeks ago

India eases paperwork for foreign bond investors amid inclusion in JPMorgan’s emerging market bond index

Live Mint  

India is taking steps to reduce the paperwork required for foreign investors to purchase its sovereign bonds, according to a Bloomberg report citing an unnamed source. This move follows a Bloomberg report highlighting foreign investors' challenges due to the extensive paperwork involved. This initiative coincides with India’s inclusion in JPMorgan’s emerging market bond index on Friday. Simplification process explained The …

Bonds, Indian bonds: Are they outshining those in other emerging markets?
5 months, 3 weeks ago

Bonds, Indian bonds: Are they outshining those in other emerging markets?

Firstpost  

Compared to most of these countries, India’s bond market is an outperformer, whether it be in terms of size, stability, potential for investment, or yields. File image India’s inclusion in the JP Morgan Government Bond Index-Emerging Markets, effective Friday is being hailed as a major milestone. Bond market size With indexed bonds amounting to over $400 billion in outstanding value, …

How Indian bonds inclusion in JP Morgan index will affect rupee value, economy, businesses, and investors
5 months, 3 weeks ago

How Indian bonds inclusion in JP Morgan index will affect rupee value, economy, businesses, and investors

Firstpost  

India’s inclusion in the JP Morgan emerging markets bond index is likely to strengthen the rupee by attracting significant foreign inflows. The inclusion in JP Morgan’s index creates a pathway for foreign investors to participate more actively in the Indian bond market. Impact on the rupee When foreign investors buy Indian bonds, they must convert their currency, such as US …

Indian government bonds included in JPMorgan emerging market index: What happens next?
5 months, 3 weeks ago

Indian government bonds included in JPMorgan emerging market index: What happens next?

Hindustan Times  

India is projected to receive billions of dollars in inflows after its inclusion in the JPMorgan Chase & Co emerging markets index on Friday, which will open up the country’s $1.3 trillion bond market to a broad range of foreign investors. While investors worldwide have already invested close to $11 billion in Indian bonds that are eligible to be included …

Foreign investors find it hard to invest in Indian government bonds due to heavy paperwork: Report
5 months, 3 weeks ago

Foreign investors find it hard to invest in Indian government bonds due to heavy paperwork: Report

Hindustan Times  

Despite India’s $1.3 trillion sovereign bond market becoming very attractive for foreign investors, they face a lot of challenges ranging from lengthy documentation to the intricacies of settling a trade and the complexities of paying taxes on any profits, Bloomberg reported. This became obvious as foreign investors are eagerly buying bonds before they’re added to JPMorgan Chase & Co.’s main …

Why world's biggest bond investors are set to bet big on India
6 months ago

Why world's biggest bond investors are set to bet big on India

Firstpost  

JPMorgan is set to include India in its largest emerging-market bond index on 28 June. From higher return on investment to strength of the Indian economy, we explain the factors reeling in investment in the Indian government’s debt The Indian bond market is expected to see an additional inflow of $40 billion from foreign investors. Source: Moneycontrol Factors driving investors …

Foreign investors buy $10 billion of Indian govt bonds since JPM inclusion announcement
6 months ago

Foreign investors buy $10 billion of Indian govt bonds since JPM inclusion announcement

Hindustan Times  

Foreign investors have bought more than $10 billion of Indian government bonds that will be included in J.P. Morgan's debt index on June 28, taking international ownership of India's bonds to a record high, Reuters reported. Representational Overseas buyers now own 1.79 lakh crore rupees of Indian bonds included in the so-called fully accessible route which allows unrestricted foreign purchases, …

JPMorgan Ignites $40 Billion Rush Into Indian Bonds
6 months ago

JPMorgan Ignites $40 Billion Rush Into Indian Bonds

Bloomberg  

For decades, the titans of global finance viewed India as just another emerging market—a place with the potential for substantial gains, but risky enough to be kept at the periphery of a portfolio. “There is a very strong case for India over the medium to longer term to have more of a place in people’s portfolios,” says Jae Lee, a …

Forex Update: India's Foreign Exchange Reserves Hit All-Time High of $651.51 Billion
6 months, 2 weeks ago

Forex Update: India's Foreign Exchange Reserves Hit All-Time High of $651.51 Billion

News 18  

India’s forex reserves jumped $4.837 billion to a new all-time high of $651.51 billion for the week ended May 31, according to the latest RBI data. “Touching a new milestone, India’s foreign exchange reserves reached a historical high of $651.5 billion as on May 31,” RBI Governor Shaktikanta Das said in his statement while announcing the bimonthly policy review. Sanjeev …

Mint Quick Edit | Will S&P upgrade India’s awkward credit rating?
6 months, 3 weeks ago

Mint Quick Edit | Will S&P upgrade India’s awkward credit rating?

Live Mint  

S&P Global has raised the outlook on India’s credit rating to “positive" from “stable" while affirming its rating of BBB minus. It cited robust economic growth and improved expenditure quality for the move, which puts India’s sovereign rating in the reckoning for an upgrade. While India’s macro numbers broadly seem to be moving in the right direction, government officials have …

JPMorgan inclusion of Indian bonds to aid private credit
7 months, 2 weeks ago

JPMorgan inclusion of Indian bonds to aid private credit

Hindustan Times  

India’s inclusion into JPMorgan Chase & Co.’s bond index will give a boost to its private credit markets by providing a benchmark for investments and attracting more inflows, according BPEA Credit. The inclusion constitutes a watershed moment for the country’s $1.2 trillion government debt market, with spillovers to other asset classes. “It gives a reference point” for offshore investors who …

RBI Governor Shaktikanta Das: CAD for 2023-24, 2024-25 to be eminently manageable
10 months, 2 weeks ago

RBI Governor Shaktikanta Das: CAD for 2023-24, 2024-25 to be eminently manageable

The Hindu  

“With India’s current account deficit declining sharply to 1% of GDP in Q2:2023-24 from 3.8% in Q2:2022-23,” RBI Governor Shaktikanta Das on February 8 said going ahead, the net balance under services and remittances would remain in large surplus, partly offsetting the trade deficit. Moreover, with around 10.2% share in world telecommunications, computer and information services exports, India is a …

India’s Markets Are Turning Into an Inexorable Force
11 months, 1 week ago

India’s Markets Are Turning Into an Inexorable Force

Bloomberg  

Anyone wondering whether the India juggernaut is sustainable will find the answer in bonds, which have a penchant for discerning the way of the world and telling every other market what to do. At least $1 trillion of government securities traded multiple times annually in the most populous nation and biggest democracy are poised to become the darling of international …

India's forex reserves hit over 20-month high, jump $9.112 bn to $615.971 bn
1 year ago

India's forex reserves hit over 20-month high, jump $9.112 bn to $615.971 bn

Firstpost  

India’s foreign currency assets, the biggest component of the forex reserves, rose USD 8.349 billion to USD 545.048 billion, the central bank’s weekly statistical data showed. India’s foreign exchange reserves rose for the fifth straight week, reaching an over 20-month high of $615.97 billion as of Dec. 15, data from the Reserve Bank of India showed on Friday. Before December …

Why Entry Into JPMorgan Bond Indices is a Major Win for India - News18
1 year, 2 months ago

Why Entry Into JPMorgan Bond Indices is a Major Win for India - News18

News 18  

A quiet transformation that has gone less noticed in India is that of its debt market which is in for a big overhaul. Getting benchmarked on these two indices would lead to about $30 billion in inflows into Indian debt paper that’s largely confined to government banks and financial institutions. As per reports, large investors in government debt internationally expected …

JPMorgan global bond index: What does it mean for India?
1 year, 2 months ago

JPMorgan global bond index: What does it mean for India?

Live Mint  

In September 2023, JP Morgan made the much-awaited announcement of India's inclusion in the Government Bond Index. India’s inclusion in the bond index Indian sovereign bonds will be included in the Government Bond – Emerging Market Index. Benefits of inclusion in the JP Morgan global bond index As per experts, India's inclusion in the GBI-EM index is expected to attract …

JPMorgan to include India in its emerging market debt index
1 year, 3 months ago

JPMorgan to include India in its emerging market debt index

Live Mint  

JPMorgan said it will include Indian government bonds in its widely tracked emerging market debt index. India's local bonds will be included in the Government Bond Index-Emerging Markets index and the index suite, benchmarked by about $236 billion in global funds according to JPMorgan. “India's weight is expected to reach the maximum weight threshold of 10% in the GBI-EM Global …

India to enter green bond market with $1 billion debut auction on Wednesday
1 year, 11 months ago

India to enter green bond market with $1 billion debut auction on Wednesday

Business Standard  

India to enter green bond market with $1 billion debut auction on Wednesday If this sovereign auction is over-subscribed and the cutoff yield materially lower than regular government bonds, it would encourage larger green issuance next year Premium This offering will be sold in 5-year and 10-year tenors via a uniform price auction on Jan. 25; a second, similar offering …

Govt bond market likely to see an explosion of new products in FY24
1 year, 11 months ago

Govt bond market likely to see an explosion of new products in FY24

Business Standard  

Govt bond market likely to see an explosion of new products in FY24 All the state governments now have a significant presence in the bond market, having sharply lowered their dependence on the Centre for borrowing ever since Covid struck Premium The volumes are expected to rise soon in FY24, from the Rs 16,000 crore earmarked to be raised from …

The test for India’s sovereign green bonds
2 years, 1 month ago

The test for India’s sovereign green bonds

Live Mint  

The Indian government is all set to debut in the green bonds market soon, as laid out in the Union Budget earlier this year. Corporates have been issuing green bonds in India for a few years in a growing market, but the country’s global share stood at just 1% in the first half of 2022. Big corporations such as Adani …

Foreign investors sell $500 million of India govt bonds in two days
2 years, 1 month ago

Foreign investors sell $500 million of India govt bonds in two days

Live Mint  

Foreign investors have sold Indian government debt worth nearly $500 million in the past two sessions, with the so-called FAR bonds bearing the brunt of a selloff that traders note is ahead of the Federal Reserve's policy decision and crucial U.S. data. These investors have net sold bonds worth ₹4,110 crore over Friday and Monday, CCIL data showed, with more …

JPMorgan refrains from adding India to bond index, keeps on watch
2 years, 2 months ago

JPMorgan refrains from adding India to bond index, keeps on watch

Live Mint  

JPMorgan Chase & Co. is keeping Indian government bonds off its emerging-market sovereign bond index for now, citing investment hurdles that must be resolved for the inclusion to take place. The decision to refrain from adding the bonds to the JPMorgan Government Bond Index-Emerging Markets -- while keeping them under review for inclusion -- was based on investor feedback, the …

India Inc's Overseas Direct Investment Drops 59% at $1.03 Billion in August: RBI Data
2 years, 3 months ago

India Inc's Overseas Direct Investment Drops 59% at $1.03 Billion in August: RBI Data

News 18  

India Inc’s investment in their overseas ventures dropped by 59 per cent on an annual basis to $1.03 billion in August this year, data from Reserve Bank showed on Friday. The RBI data on Outward Foreign Direct Investment for August 2022 showed that the total financial commitment by the domestic firms was worth $1,027.67 million in August 2022-23. Among the …

India's Govt Bonds May Be Added To Global Index: Report; Check Details
2 years, 4 months ago

India's Govt Bonds May Be Added To Global Index: Report; Check Details

News 18  

India’s government bonds may be added to JPMorgan’s GBI-EM Global Diversified Bond Index next year, according to a Bloomberg report. The report, quoting Goldman Sachs Group, said India, which is a large, deep and high-yielding market, would help to diversify as well as boost the average yield of the overall index. The country’s sovereign bonds could be added to the …

RBI eases overseas borrowing to spur forex inflows
2 years, 5 months ago

RBI eases overseas borrowing to spur forex inflows

The Hindu  

The Reserve Bank of India on Wednesday announced a slew of temporary measures aimed at boosting foreign exchange inflows, including a doubling in the overseas borrowing limit for eligible corporates and removal of interest rate ceilings for NRIs’ foreign currency deposits. “It has been decided that with effect from the reporting fortnight beginning July 30, incremental FCNR and NRE deposits …

Union Budget 2022-23: Global debt investors may get tax relief
2 years, 11 months ago

Union Budget 2022-23: Global debt investors may get tax relief

India Today  

Global debt investors may get some relief in the upcoming Budget 2022 as Finance Minister Nirmala Sitharaman may consider a capital gains tax waiver, according to an Economic Times report. If FM Sitharaman announces such measure in her Union Budget speech on February 1, it will pave the way for India's inclusion in the global bond indices of Bloomberg-Barclays and …

India is likely to be included in global bond index by October: Report
3 years, 9 months ago

India is likely to be included in global bond index by October: Report

Live Mint  

India is confident of getting included in a global bond index by October but it will not be able to raise funds in the coming financial year as the actual listing could take around 12 months after its inclusion, said two senior sources aware of the discussions. Since 2019, India has been working toward getting included in global bond indexes …

India Inc's overseas direct investment declines 31% to $1.85 billion in February
3 years, 9 months ago

India Inc's overseas direct investment declines 31% to $1.85 billion in February

The Hindu  

India Inc's overseas direct investment fell by 31% to $1.85 billion in February this year, the RBI data showed. Of the total investment made by Indian companies in foreign markets, $1.36 billion was in the form of loan; $297.37 million comprised as equity investment and the rest of $183.82 million was by way of issuance of guarantee, according to the …

Efforts on to Include Indian Govt Bonds in Global Indices from Next Year: DEA Secretary
4 years ago

Efforts on to Include Indian Govt Bonds in Global Indices from Next Year: DEA Secretary

News 18  

The government is working on inclusion of Indian sovereign bonds in global bond indices from next year, Economic Affairs Secretary Tarun Bajaj said on Friday. "We are also now working on the inclusion of Indian government sovereign bonds into the global bond indices, and we hope that this should happen in the next year, and this will definitely help," Bajaj …

India Inc's Overseas Investments at $12.25 Billion During Apr-Nov: Report
4 years ago

India Inc's Overseas Investments at $12.25 Billion During Apr-Nov: Report

News 18  

Corporate India has invested USD 12.25 billion overseas during the first eight months of the current fiscal, most of which has gone into the firms' wholly-owned subsidiaries in the US, Singapore or the Netherlands, according to data collated by Care Ratings. In the whole of FY20, total foreign direct investment by domestic companies was USD 13 billion, while FDI inflows …

Opinion | How pursuit of good governance is driving investments in India
4 years ago

Opinion | How pursuit of good governance is driving investments in India

Live Mint  

The saying goes, "The pessimist complains about the wind. While foreign portfolio investor inflows across emerging economies witnessed a decline due to the pandemic, India recorded a surge to $13.5 billion - a testimony to investor confidence in India's growth story. The National Infrastructure Pipeline, a ₹13 trillion project, is one of the examples of how Prime Minister Narendra Modi's …

Govt may revisit overseas sovereign borrowing idea in 2021 Budget
4 years, 1 month ago

Govt may revisit overseas sovereign borrowing idea in 2021 Budget

Live Mint  

NEW DELHI: A proposal to go for sovereign borrowing overseas, that first found mention in the 2019 Budget, is back on the table at the finance ministry and could again figure in the government’s annual accounts statement next year, according to two sources familiar with the development. The idea is being revived to lower government’s borrowing costs by tapping cheaper …

RBI to Move to Next Generation Treasury Application for Managing Forex, Gold Reserves
4 years, 2 months ago

RBI to Move to Next Generation Treasury Application for Managing Forex, Gold Reserves

News 18  

In a bid to improve its functioning, the Reserve Bank has decided to move to the Next Generation Treasury Application for managing the country’s foreign exchange and gold reserves. The NGTA, for which the RBI has invited bids from eligible vendors, would be supporting various transactions in asset classes like Fixed Income, Forex, Money Market and Gold. “RBI proposes to …

India’s bond rally unlikely to lure global funds: PineBridge
4 years, 3 months ago

India’s bond rally unlikely to lure global funds: PineBridge

Live Mint  

The gains in Indian bonds sparked by the central bank’s measures to ease the market’s debt-supply burden will peter out soon and foreigners are unlikely to buy unless government finances improve, according to PineBridge Investments. “The gap in the government’s budget needs to be filled for foreign investors to return over the long-term,” said Anders Faergemann, a London-based senior money …

India Hikes Exposure to US Govt Securities By Nearly $13 Billion in May
4 years, 4 months ago

India Hikes Exposure to US Govt Securities By Nearly $13 Billion in May

News 18  

India's holdings of American government securities increased by nearly $13 billion to $169.9 billion at the end of May, according to latest official data. After marginally rising to $157.4 billion in April, the holdings jumped to $169.9 billion in May, an increase of around $13 billion in a month's time. The country was the 12th largest holder of the American …

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