Foreign investors as increasingly moving towards rupee bonds as a strong rupee and a rise in investor confidence post the ruling central government's triumph in various state elections has increased the appetite for masala bonds.
Taking advantage of the improved sentiment, Indian companies plan to sell masala bonds worth as much as $1 billion during the months ahead.
However, the rise in the sale of masala bonds is likely to impact sentiment over foreign currency bond sales, brokerage firm ICRA said in a note. The note also said that the rise in offshore rupee bond sales is positive for Indian companies.
In a truncated week, Indian companies borrowed a sum of Rs 2,700 crore from the onshore bond market compared to Rs 5,200 crore last week.
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