JP Morgan Chase & Co has announced it will include Indian government bonds to its emerging markets bond index from June 2024, a much-anticipated move which could attract more foreign flows into the domestic government securities market. The move can potentially attract about $25 billion into the country, as per analyst estimates.
India, which will be included in the GBI-EM Global index suite starting June 28, 2024, is expected to reach the maximum weight of 10 per cent in the GBI-EM Global Diversified Index (GBI-EM GD), JP Morgan said. Currently, 23 Indian government bonds with a combined notional value of $330 billion are index eligible. Inclusion of the bonds will be staggered over 10 months through March 31, 2025 (i.e., inclusion of 1 per cent weight per month), it said.
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