Analysts expect the Wall Street major JP Morgan’s decision to include the Indian government bonds in its global index from June next year will lead to a direct inflow of USD 20-25 billion in the country’s debt market over 18-21 months.
JP Morgan, announcing the inclusion earlier in the day, said India will have a maximum weight of 10 per cent in the index eventually and around 8.7 per cent in the emerging market global index.
JP Morgan said in a statement on Friday that 73 per cent of investors are in favour the decision. The inclusion will be staggered over a 10-month period from June 28, 2024 to March 31, 2025.
“We estimate this implies direct inflows of USD 20-25 billion over the course of the next 18-21 months, but some front-loading of inflows cannot be discounted,” Rahul Bajoria, managing director and head of emerging market Asia (ex-China) at Barclays, said in a note on Friday.
Japanese brokerage Nomura has pegged the inflows at USD 23.6 billion, which is 10 per cent of the
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