Foreign investors flock to Indian bonds, reached a 6-year high

Foreign investment in Indian government bonds soared in November, reaching its highest level in six years ahead of their inclusion in JPMorgan’s emerging market index next year.

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Investors and treasury officials anticipate a continued surge in purchases.

Data from Clearing Corp of India revealed that foreign portfolio investors bought a net 127.2 billion rupees ($1.53 billion) worth of bonds in November, marking the highest influx since June 2017. A significant portion, approximately 96.6 billion rupees, was invested in securities without any investment limit, earmarked for inclusion in the JPMorgan index.

Nagaraj Kulkarni from Standard Chartered Bank stated that beyond the belief that bond yields in developed markets have reached their peak, the inflows into

Indian government bonds are bolstered by the imminent index inclusion. He foresees sustained foreign investment in Indian bonds until June, coinciding with their addition to the JPMorgan index.