Union Information and Broadcasting Minister Anurag Thakur on Tuesday launched the ‘75 Creative Minds of Tomorrow’ film challenge in Goa, which is part of International Film Festival of India (IFFI).
According to JPMorgan, its widely followed developing market debt index will now cover Indian government bonds. The fifth-largest economy in the world is projected to receive influxes of billions of dollars as a result of this inclusion.
The Government Bond Index-Emerging Markets (GBI-EM) index and the index suite, which are benchmarked by around $236 billion in worldwide funds, will cover India’s domestic bonds.
Starting on June 28, 2024, the index provider will add the securities. According to a statement, India’s weight on the index will not exceed 10%.
23 Indian Government Bonds (IGBs) totaling $330 billion in notional value are eligible, according to JPMorgan. All are “fully accessible” to visitors who are not locals.
India is anticipated to have a weight of about 8.7% in the GBI-EM Global index and a maximum weight of 10% in the GBI-EM Global Diversified, according to JPMorgan.
As India is anticipated to attain the maximum weighting of 10%, inclusion will begin on June 28, 2024, and last for 10 months with 1% increments on its index weighting, according to JPMorgan.
Since the beginning of 2023, foreign investors have net bought $3.4 billion worth of Indian bonds. Less than 2% of the outstanding Indian government debt is owned by foreign investors.
“An inclusion in JP Morgan’s index could see others follow up,” BofA Securities stated in a report in July.
According to a study conducted by JPMorgan in March, support for India’s high-yielding, index-eligible government bonds had increased to 60% from 50% the year before.
Another significant index provider, FTSE Russell, is also keeping an eye out for Indian bonds to be added to its emerging market index.