Goldman Sees India Bond Inclusion Spurring $40 Billion Inflows
(Bloomberg) -- Goldman Sachs Group Inc. sees India's inclusion to JPMorgan Chase & Co.'s key emerging market index spurring inflows upwards of $40 billion to the country's bonds markets over the next 18 months.
This includes passive flows of around $30 billion, and at least another $10 billion of active flows given the country's attractiveness from a yield and low volatility perspective, analysts including Danny Suwanapruti wrote in a note Friday.
“The flows will be front-loaded, beginning immediately, as investors pre-position for inclusion next year,” they said, as “several emerging market-dedicated funds are already set up on India”.
India's addition to the index is a keenly awaited event, pointing to the growing appeal of the country to foreign investors looking to diversify their portfolios. They've already bought $3.5 billion of Indian debt so far this year, according to data compiled by Bloomberg.
READ: Bond Bulls in Korea and India Need to be Patient on Index Boost
Bloomberg LP is the parent company of Bloomberg Index Services Ltd., which administers indexes that compete with those from other service providers.
--With assistance from Anirban Nag and Subhadip Sircar.
More stories like this are available on bloomberg.com
©2023 Bloomberg L.P.
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