India's local bonds will be included in the Government Bond Index-Emerging Markets (GBI-EM) index and the index suite, benchmarked by about $236 billion in global funds according to JPMorgan.
JPMorgan said 23 Indian Government Bonds (IGBs) with a combined notional value of $330 billion are eligible.
"India's weight is expected to reach the maximum weight threshold of 10% in the GBI-EM Global Diversified (.JPMGBIEMGD), and approximately 8.7% in the GBI-EM Global index," said JPMorgan.
Foreign investor buying in Indian bonds has remained tepid with net purchases of $3.4 billion so far in 2023.
The Indian rupee rose 0.3% in offshore trade before local markets opened while traders expected local bond yields to fall sharply.
Persons:
Thomas White, ”, Sanjeev Sanyal, Aftab Ahmed, Rodrigo Campos, Sarita Singh, Chris Reese, David Gregorio, Christian
Organizations:
REUTERS, JPMorgan, Government Bond, Global, Council, Securities, DBS, Thomson
Locations:
India, Egypt, New Delhi, New York